Analyzing Bath & Body Works (NYSE:BBWI) and ATRenew (NYSE:RERE)

ATRenew (NYSE:RERE) and Bath & Body Works (NYSE:BBWI) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Insider and Institutional Ownership

19.3% of ATRenew shares are owned by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are owned by institutional investors. 10.7% of ATRenew shares are owned by company insiders. Comparatively, 0.3% of Bath & Body Works shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

ATRenew has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Earnings and Valuation

This table compares ATRenew and Bath & Body Works”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATRenew	$16.33 billion	0.04	-$22.01 million	($0.01)	-258.50
Bath & Body Works	$7.31 billion	0.79	$878.00 million	$3.64	7.45

Bath & Body Works has lower revenue, but higher earnings than ATRenew. ATRenew is trading at a lower price-to-earnings ratio than Bath & Body Works, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ATRenew and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATRenew	-0.53%	6.87%	4.85%
Bath & Body Works	12.43%	-44.03%	14.45%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for ATRenew and Bath & Body Works, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATRenew	0	0	0	0	0.00
Bath & Body Works	0	5	13	0	2.72

Bath & Body Works has a consensus price target of $45.06, suggesting a potential upside of 66.20%. Given Bath & Body Works’ stronger consensus rating and higher probable upside, analysts plainly believe Bath & Body Works is more favorable than ATRenew.

Summary

Bath & Body Works beats ATRenew on 11 of the 14 factors compared between the two stocks.

About ATRenew

ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.

About Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.