Critical Review: Bed Bath & Beyond (BBBY) vs. Appliance Recycling Cntrs of Amer (ARCI)

Bed Bath & Beyond (NASDAQ:BBBY) and Appliance Recycling Cntrs of Amer (NASDAQ:ARCI) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Bed Bath & Beyond and Appliance Recycling Cntrs of Amer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bed Bath & Beyond 2.81% 12.52% 5.01%
Appliance Recycling Cntrs of Amer -23.05% -9.87% -6.12%

Earnings and Valuation

This table compares Bed Bath & Beyond and Appliance Recycling Cntrs of Amer’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bed Bath & Beyond $12.35 billion 0.14 $424.85 million $3.12 3.97
Appliance Recycling Cntrs of Amer $41.54 million 0.10 $110,000.00 N/A N/A

Bed Bath & Beyond has higher revenue and earnings than Appliance Recycling Cntrs of Amer.

Analyst Ratings

This is a summary of recent ratings for Bed Bath & Beyond and Appliance Recycling Cntrs of Amer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bed Bath & Beyond 8 10 0 0 1.56
Appliance Recycling Cntrs of Amer 0 0 0 0 N/A

Bed Bath & Beyond presently has a consensus price target of $15.92, suggesting a potential upside of 28.62%. Given Bed Bath & Beyond’s higher probable upside, equities research analysts clearly believe Bed Bath & Beyond is more favorable than Appliance Recycling Cntrs of Amer.

Insider & Institutional Ownership

96.2% of Bed Bath & Beyond shares are held by institutional investors. Comparatively, 3.4% of Appliance Recycling Cntrs of Amer shares are held by institutional investors. 5.5% of Bed Bath & Beyond shares are held by insiders. Comparatively, 10.2% of Appliance Recycling Cntrs of Amer shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Bed Bath & Beyond has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Appliance Recycling Cntrs of Amer has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Dividends

Bed Bath & Beyond pays an annual dividend of $0.64 per share and has a dividend yield of 5.2%. Appliance Recycling Cntrs of Amer does not pay a dividend. Bed Bath & Beyond pays out 20.5% of its earnings in the form of a dividend.

Summary

Bed Bath & Beyond beats Appliance Recycling Cntrs of Amer on 10 of the 12 factors compared between the two stocks.

About Bed Bath & Beyond

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. It sells a range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and various juvenile products. It also provides various textile products, amenities, and other goods to institutional customers in the hospitality, cruise line, healthcare, and other industries. As of March 3, 2018, the company had a total of 1,552 stores, includes 1,017 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico, and Canada; 276 stores under the names of World Market, Cost Plus World Market, or Cost Plus; 119 buybuy BABY stores; 83 stores under the Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! names; and 57 stores under the Harmon, Harmon Face Values, or Face Values. It also offers products through various Websites and applications, such as bedbathandbeyond.com, bedbathandbeyond.ca, harmondiscount.com, facevalues.com, christmastreeshops.com, andthat.com, buybuybaby.com, buybuybaby.ca, harborlinen.com, t-ygroup.com, worldmarket.com, ofakind.com, onekingslane.com, personalizationmall.com, chefcentral.com, and decorist.com. In addition, the Company operates Of a Kind, an e-commerce Website that features specially commissioned limited edition items from emerging fashion and home designers; One Kings Lane, an authority in home décor and design that offers a collection of selected home goods, and designer and vintage items; PersonalizationMall.com, an online retailer of personalized products; Chef Central, an online retailer of kitchenware, cookware, and homeware items catering to cooking and baking enthusiasts; and Decorist, an online interior design platform that provides personalized home design services. Bed Bath & Beyond Inc. was founded in 1971 and is based in Union, New Jersey.

About Appliance Recycling Cntrs of Amer

Appliance Recycling Centers of America, Inc., together with its subsidiaries, engages in the recycle of household appliances in North America. The company operates in two segments, Recycling and Technology. It engages in collecting, recycling, and installing appliances for utilities and other customers. The company also provides turnkey appliance recycling and replacement services for utilities and other sponsors of energy efficiency programs. Appliance Recycling Centers of America, Inc. was founded in 1976 and is headquartered in Minneapolis, Minnesota.

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