Reviewing Bob’s Discount Furniture (NYSE:BOBS) & Build-A-Bear Workshop (NYSE:BBW)

Bob’s Discount Furniture (NYSE:BOBS) and Build-A-Bear Workshop (NYSE:BBW) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Insider & Institutional Ownership

79.3% of Build-A-Bear Workshop shares are held by institutional investors. 3.2% of Bob’s Discount Furniture shares are held by insiders. Comparatively, 4.0% of Build-A-Bear Workshop shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bob’s Discount Furniture	5.66%	26.85%	6.18%
Build-A-Bear Workshop	9.96%	29.66%	13.60%

Analyst Recommendations

This is a summary of recent ratings and price targets for Bob’s Discount Furniture and Build-A-Bear Workshop, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bob’s Discount Furniture	0	4	11	0	2.73
Build-A-Bear Workshop	0	2	2	0	2.50

Bob’s Discount Furniture presently has a consensus price target of $23.67, indicating a potential upside of 15.33%. Build-A-Bear Workshop has a consensus price target of $53.50, indicating a potential upside of 82.34%. Given Build-A-Bear Workshop’s higher probable upside, analysts plainly believe Build-A-Bear Workshop is more favorable than Bob’s Discount Furniture.

Earnings and Valuation

This table compares Bob’s Discount Furniture and Build-A-Bear Workshop”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bob’s Discount Furniture	$2.37 billion	1.13	$121.72 million	$1.11	18.49
Build-A-Bear Workshop	$529.83 million	0.68	$52.20 million	$4.03	7.28

Bob’s Discount Furniture has higher revenue and earnings than Build-A-Bear Workshop. Build-A-Bear Workshop is trading at a lower price-to-earnings ratio than Bob’s Discount Furniture, indicating that it is currently the more affordable of the two stocks.

Summary

Build-A-Bear Workshop beats Bob’s Discount Furniture on 7 of the 13 factors compared between the two stocks.

About Bob’s Discount Furniture

Bob’s Discount Furniture is a U.S. home furnishings retailer offering value-priced furniture, mattresses and related products. Its merchandise includes items for living rooms, bedrooms, dining rooms and home offices, along with rugs, lighting and home décor. The company sells through retail stores and its e-commerce platform, serving customers across the United States. Its stores provide an in-person way to browse furniture and mattresses, while the online channel allows customers to shop its assortment remotely.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. is a specialty retailer known for its interactive, make-your-own stuffed-animal experience. Customers can choose a plush animal, add clothing and accessories, and personalize it with features such as sounds and scents. The company also sells plush toys, apparel, accessories, and related products through its stores and e-commerce channels. Its business includes company-operated locations as well as stores operated by franchisees and other partners. Founded in 1997, Build-A-Bear Workshop serves customers in the United States and international markets.