Kingfisher (OTCMKTS:KGFHY) vs. Build-A-Bear Workshop (NYSE:BBW) Critical Analysis

Kingfisher (OTCMKTS:KGFHY) and Build-A-Bear Workshop (NYSE:BBW) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Volatility & Risk

Kingfisher has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Build-A-Bear Workshop has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

0.0% of Kingfisher shares are held by institutional investors. Comparatively, 79.3% of Build-A-Bear Workshop shares are held by institutional investors. 5.8% of Build-A-Bear Workshop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Kingfisher pays an annual dividend of $0.17 per share and has a dividend yield of 2.1%. Build-A-Bear Workshop pays an annual dividend of $0.88 per share and has a dividend yield of 1.7%. Build-A-Bear Workshop pays out 19.7% of its earnings in the form of a dividend. Build-A-Bear Workshop has increased its dividend for 1 consecutive years.

Profitability

This table compares Kingfisher and Build-A-Bear Workshop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kingfisher	N/A	N/A	N/A
Build-A-Bear Workshop	11.34%	41.14%	19.56%

Analyst Recommendations

This is a summary of recent ratings and price targets for Kingfisher and Build-A-Bear Workshop, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingfisher	2	3	1	0	1.83
Build-A-Bear Workshop	0	1	4	0	2.80

Build-A-Bear Workshop has a consensus target price of $68.00, suggesting a potential upside of 28.01%. Given Build-A-Bear Workshop’s stronger consensus rating and higher probable upside, analysts plainly believe Build-A-Bear Workshop is more favorable than Kingfisher.

Valuation & Earnings

This table compares Kingfisher and Build-A-Bear Workshop”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingfisher	$16.34 billion	0.43	$235.86 million	N/A	N/A
Build-A-Bear Workshop	$522.52 million	1.33	$51.78 million	$4.46	11.91

Kingfisher has higher revenue and earnings than Build-A-Bear Workshop.

Summary

Build-A-Bear Workshop beats Kingfisher on 10 of the 14 factors compared between the two stocks.

About Kingfisher

Kingfisher plc, together with its subsidiaries, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally. It also operates retail stores under the B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koçtas brands. The company sells its products through stores and e-commerce channels. Kingfisher plc was incorporated in 1982 and is headquartered in London, the United Kingdom.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.