Bath & Body Works vs Asbury Automotive

Bath & Body Works Inc and Asbury Automotive Group Inc this page compares business models, financial performance, and market context in a neutral, accessible way. It outlines how each company approaches customer segments, revenue streams, and scale, without implying outcomes or giving recommendations. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

BBWI

Metric

ABG

$4.43B

Market Cap

$4.76B

0.82%

Potential Profit

0.42%

Hold

Analyst Rating

Hold

Investment Analysis

Bath & Body Works

BBWI

Pros

Bath & Body Works is currently trading at an undervalued EV/EBIT ratio of 8.08 compared to its 5-year average of 11.01, suggesting potential value.
The company offers a dividend yield of over 3%, providing steady income potential for investors.
Its price-to-sales ratio of 0.70 is below the 5-year average, indicating undervaluation relative to sales.

Considerations

Bath & Body Works has a negative price-to-book ratio, reflecting market concerns about its book value.
Despite valuation indicators, the stock price is near its 52-week low, which may indicate market uncertainty or weakness.
The company faces intense competition in the retail personal care sector, which can pressure margins and growth.

Asbury Automotive

ABG

Pros

Asbury Automotive Group has demonstrated strong long-term share price appreciation, more than doubling in five years.
The company maintains a high return on equity of over 40%, indicating efficient capital management.
Recent earnings exceeded analyst expectations, highlighting effective operational execution.

Considerations

Asbury Automotive carries a relatively high debt-to-equity ratio of about 147%, which could increase financial risk.
Its net profit margin remains modest at around 3%, reflecting limited profitability on revenue.
The stock currently has a mixed analyst outlook with some bearish signals in moving averages, implying near-term uncertainty.

About The Companies

Bath & Body Works (BBWI)

Bath & Body Works, Inc. is a global retailer specialising in personal care and home fragrance products. It operates as an 'omnichannel' business, meaning it reaches customers through various connected channels, including over 1,890 of its own retail stores in the US and Canada, a popular e-commerce website, and options like 'buy online, pick-up in-store'. The company's product range is extensive, featuring well-known collections of 3-wick candles, hand soaps, and body lotions under brands like Bath & Body Works and White Barn. Beyond its core North American market, the brand has a growing international presence, with over 525 franchised locations across the globe. This strategy allows the company to cater to a broad customer base with its distinctive fragrances for both body and home. As with any investment, it's important to remember that a company's past performance doesn't guarantee future results.

Asbury Automotive (ABG)

Asbury Automotive Group Inc. is a prominent American automotive retailer. The company's operations are divided into two main segments: Dealerships and Total Care Auto (TCA). Through its network of dealerships, Asbury offers a comprehensive range of automotive products and services, covering the full lifecycle of vehicle ownership. This includes the sale of new and used vehicles, as well as parts and services for vehicle repair, maintenance, and collision repairs. Furthermore, the company provides finance and insurance (F&I) products by arranging vehicle financing through third parties and offering aftermarket products like extended service contracts. With around 175 new-vehicle dealerships representing over 30 different brands, Asbury has a significant footprint in the US market. Investors may find it useful to consider how economic factors affecting consumer spending on large purchases, like cars, could influence the company's performance. As with any investment, a stock's value can go down as well as up.

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Bath & Body Works vs Asbury Automotive

Comparison Snapshot

Investment Analysis

Bath & Body Works

Pros

Considerations

Asbury Automotive

Pros

Considerations

About The Companies

Buy BBWI or ABG in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

Bath & Body Works vs Asbury Automotive

Comparison Snapshot

Investment Analysis

Bath & Body Works

Pros

Considerations

Asbury Automotive

Pros

Considerations

About The Companies

Buy BBWI or ABG in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Bath & Body Works vs Brinker

Bath & Body Works vs Meritage Homes

Bath & Body Works vs Group 1 Automotive

Frequently asked questions

What does EV/EBIT tell me about each company, and why is Bath & Body Works' current ratio notable?

What does dividend yield imply for stock investments in these two companies?

How should price-to-sales (P/S) be interpreted in this comparison?

What does a negative price-to-book imply for Bath & Body Works?

How should high ROE be interpreted for Asbury Automotive Group?

What does a high debt-to-equity ratio mean for risk in Asbury Automotive Group?

Why is profit margin important when comparing these two stocks?

How does 52-week performance factor into the analysis of these stocks?

What does recent earnings surprise indicate about Asbury Automotive Group?

How should a beginner use this page to compare the two stocks without making a recommendation?

What is the educational disclaimer for readers of this comparison?

Comparison Snapshot

About The Companies