Advance Auto Parts (NYSE:AAP) and Bed Bath & Beyond (NASDAQ:BBBY) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Insider and Institutional Ownership
93.9% of Advance Auto Parts shares are owned by institutional investors. 4.1% of Advance Auto Parts shares are owned by company insiders. Comparatively, 1.3% of Bed Bath & Beyond shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Advance Auto Parts has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.
Valuation and Earnings
This table compares Advance Auto Parts and Bed Bath & Beyond's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Advance Auto Parts | $9.71 billion | 1.08 | $486.90 million | $8.19 | 19.58 |
Bed Bath & Beyond | $11.16 billion | 0.29 | $-613,820,000.00 | $0.46 | 58.39 |
Advance Auto Parts has higher earnings, but lower revenue than Bed Bath & Beyond. Advance Auto Parts is trading at a lower price-to-earnings ratio than Bed Bath & Beyond, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Advance Auto Parts and Bed Bath & Beyond's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Advance Auto Parts | 4.84% | 15.75% | 4.86% |
Bed Bath & Beyond | -2.32% | -7.80% | -1.65% |
Analyst Ratings
This is a breakdown of current recommendations for Advance Auto Parts and Bed Bath & Beyond, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Advance Auto Parts | 3 | 7 | 11 | 0 | 2.38 |
Bed Bath & Beyond | 4 | 10 | 3 | 0 | 1.94 |
Advance Auto Parts presently has a consensus target price of $154.9524, indicating a potential downside of 3.37%. Bed Bath & Beyond has a consensus target price of $23.7143, indicating a potential downside of 11.71%. Given Advance Auto Parts' stronger consensus rating and higher probable upside, analysts plainly believe Advance Auto Parts is more favorable than Bed Bath & Beyond.
Summary
Advance Auto Parts beats Bed Bath & Beyond on 12 of the 14 factors compared between the two stocks.