Critical Analysis: Newegg Commerce (NASDAQ:NEGG) & Bed Bath & Beyond (NYSE:BBBY)

Bed Bath & Beyond (NYSE:BBBY) and Newegg Commerce (NASDAQ:NEGG) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Bed Bath & Beyond and Newegg Commerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bed Bath & Beyond	1	3	1	0	2.00
Newegg Commerce	1	0	0	0	1.00

Bed Bath & Beyond currently has a consensus target price of $8.00, suggesting a potential upside of 52.03%. Given Bed Bath & Beyond’s stronger consensus rating and higher possible upside, equities analysts clearly believe Bed Bath & Beyond is more favorable than Newegg Commerce.

Insider and Institutional Ownership

76.3% of Bed Bath & Beyond shares are held by institutional investors. Comparatively, 0.5% of Newegg Commerce shares are held by institutional investors. 1.8% of Bed Bath & Beyond shares are held by insiders. Comparatively, 22.9% of Newegg Commerce shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Bed Bath & Beyond and Newegg Commerce”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bed Bath & Beyond	$1.04 billion	0.37	-$84.62 million	($0.95)	-5.54
Newegg Commerce	$1.44 million	841.37	-$4.88 million	N/A	N/A

Newegg Commerce has lower revenue, but higher earnings than Bed Bath & Beyond.

Volatility & Risk

Bed Bath & Beyond has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500. Comparatively, Newegg Commerce has a beta of 3.69, indicating that its stock price is 269% more volatile than the S&P 500.

Profitability

This table compares Bed Bath & Beyond and Newegg Commerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bed Bath & Beyond	-5.76%	-27.60%	-12.99%
Newegg Commerce	N/A	N/A	N/A

Summary

Newegg Commerce beats Bed Bath & Beyond on 7 of the 12 factors compared between the two stocks.

About Bed Bath & Beyond

Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.

About Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.