Citi Trends (NASDAQ:CTRN – Get Free Report) and Bed Bath & Beyond (NYSE:BBBY – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Volatility & Risk
Citi Trends has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 2.89, indicating that its share price is 189% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Citi Trends and Bed Bath & Beyond, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citi Trends | 0 | 1 | 2 | 0 | 2.67 |
| Bed Bath & Beyond | 1 | 3 | 1 | 0 | 2.00 |
Profitability
This table compares Citi Trends and Bed Bath & Beyond’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Citi Trends | 1.42% | 2.09% | 0.51% |
| Bed Bath & Beyond | -5.76% | -27.60% | -12.99% |
Earnings & Valuation
This table compares Citi Trends and Bed Bath & Beyond”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citi Trends | $819.96 million | 0.71 | $5.21 million | $1.39 | 50.25 |
| Bed Bath & Beyond | $1.04 billion | 0.38 | -$84.62 million | ($0.95) | -5.61 |
Citi Trends has higher earnings, but lower revenue than Bed Bath & Beyond. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than Citi Trends, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
76.3% of Bed Bath & Beyond shares are held by institutional investors. 9.6% of Citi Trends shares are held by company insiders. Comparatively, 1.8% of Bed Bath & Beyond shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Citi Trends beats Bed Bath & Beyond on 10 of the 14 factors compared between the two stocks.
About Citi Trends
Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.
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.
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