Reviewing Bed Bath & Beyond (NYSE:BBBY) and Citi Trends (NASDAQ:CTRN)

Bed Bath & Beyond (NYSE:BBBY) and Citi Trends (NASDAQ:CTRN) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Volatility & Risk

Bed Bath & Beyond has a beta of 2.89, suggesting that its stock price is 189% more volatile than the S&P 500. Comparatively, Citi Trends has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

76.3% of Bed Bath & Beyond shares are owned by institutional investors. 1.8% of Bed Bath & Beyond shares are owned by company insiders. Comparatively, 9.6% of Citi Trends shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bed Bath & Beyond and Citi Trends, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bed Bath & Beyond	1	3	1	0	2.00
Citi Trends	0	1	2	0	2.67

Bed Bath & Beyond presently has a consensus price target of $8.67, indicating a potential upside of 62.48%. Citi Trends has a consensus price target of $73.00, indicating a potential upside of 4.52%. Given Bed Bath & Beyond’s higher probable upside, research analysts plainly believe Bed Bath & Beyond is more favorable than Citi Trends.

Valuation & Earnings

This table compares Bed Bath & Beyond and Citi Trends”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bed Bath & Beyond	$1.04 billion	0.38	-$84.62 million	($0.95)	-5.61
Citi Trends	$819.96 million	0.71	$5.21 million	$1.39	50.25

Citi Trends has lower revenue, but higher earnings 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.

Profitability

This table compares Bed Bath & Beyond and Citi Trends’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bed Bath & Beyond	-5.76%	-27.60%	-12.99%
Citi Trends	1.42%	2.09%	0.51%

Summary

Citi Trends beats Bed Bath & Beyond on 10 of the 14 factors compared between the two stocks.

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.

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.