Bath & Body Works vs Meritage Homes

Bath & Body Works Inc and Meritage Homes Corporation are compared here to explain their business models, financial performance, and the market context in which they operate. This page offers neutral, accessible insights to help readers assess strategy, growth, and industry factors without speculation. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

BBWI

Metric

MTH

$4.43B

Market Cap

$5.26B

0.82%

Potential Profit

8.85%

Hold

Analyst Rating

Buy

Investment Analysis

Bath & Body Works

BBWI

Pros

Strong market position as a specialty retailer of home fragrance and body care products with over 1,800 stores in North America.
Recent earnings beat and raised guidance supported by growth initiatives including store reformatting and digital and international channel expansion.
Attractive valuation with a price-to-earnings ratio below its 10-year historical average and a solid dividend yield around 2.66%.

Considerations

Heavy reliance on brick-and-mortar sales with about 76% of revenue from physical stores, which face risks from changing consumer footfall and mall traffic declines.
Exposure to North American markets with only about 5% of sales from international regions, limiting geographic diversification.
Recent stock price weakness signals technical bearishness which could indicate short-term downside risks despite fundamentals.

Meritage Homes

MTH

Pros

Focus on entry-level and first move-up single-family homes in diverse markets across multiple U.S. states including high-growth Sun Belt regions.
Strong valuation metrics with a price-to-earnings ratio below sector averages suggesting potential undervaluation relative to peers.
Vertical integration with financial services offerings such as mortgage, insurance, and title services supporting home sales and enhancing margins.

Considerations

Highly cyclical business sensitive to macroeconomic factors like interest rates and housing market fluctuations which could impact demand.
Execution risks inherent in land acquisition, homebuilding, and sales processes amid evolving supply chain and labour cost challenges.
Concentration in specific regional markets exposes the company to localized economic or regulatory downturns affecting residential construction.

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.

Meritage Homes (MTH)

Meritage Homes Corporation (MTH) is a US-listed homebuilder specialising in single-family detached houses, often targeting entry-level and move-up buyers across fast-growing Sun Belt markets. The company generates revenue from land acquisition, home construction and the sale of completed homes, with additional margin from design options and upgrades. Meritage has emphasised energy-efficient building standards and prescriptive cost management to try to protect margins, but its performance remains cyclical and sensitive to mortgage rates, labour and materials costs, and local land supply. With a market cap around $5.08bn, investors should weigh potential upside from housing demand recovery against risks from interest-rate moves, inventory and consumer affordability. This is general educational information, not personalised advice; values can rise or fall and past performance does not predict future returns.

Which Baskets Do They Appear In?

No baskets available in this category

Which Baskets Do They Appear In?

No baskets available in this category

Buy BBWI or MTH in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Comparisons

Bath & Body Works vs Brinker

Bath & Body Works vs Asbury Automotive

Bath & Body Works Inc vs Asbury Automotive Group Inc

Bath & Body Works vs Meritage Homes

Comparison Snapshot