Seven and I (OTCMKTS:SVNDY) vs. Bath & Body Works (NYSE:BBWI) Critical Contrast

Seven and I (OTCMKTS:SVNDY) and Bath & Body Works (NYSE:BBWI) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Institutional & Insider Ownership

0.0% of Seven and I shares are held by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are held by institutional investors. 0.3% of Bath & Body Works shares are held by company 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

Seven and I has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Seven and I and Bath & Body Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seven and I	0	0	0	0	0.00
Bath & Body Works	0	3	12	0	2.80

Bath & Body Works has a consensus target price of $41.62, suggesting a potential upside of 42.38%. Given Bath & Body Works’ stronger consensus rating and higher probable upside, analysts plainly believe Bath & Body Works is more favorable than Seven and I.

Profitability

This table compares Seven and I and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seven and I	1.65%	6.49%	2.33%
Bath & Body Works	9.88%	-48.43%	15.18%

Dividends

Seven and I pays an annual dividend of $0.18 per share and has a dividend yield of 1.4%. Bath & Body Works pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Seven and I pays out 35.3% of its earnings in the form of a dividend. Bath & Body Works pays out 21.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bath & Body Works is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Seven and I and Bath & Body Works”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seven and I	$78.57 billion	0.43	$1.14 billion	$0.51	25.35
Bath & Body Works	$7.31 billion	0.85	$798.00 million	$3.75	7.79

Seven and I has higher revenue and earnings than Bath & Body Works. Bath & Body Works is trading at a lower price-to-earnings ratio than Seven and I, indicating that it is currently the more affordable of the two stocks.

Summary

Bath & Body Works beats Seven and I on 12 of the 16 factors compared between the two stocks.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.

About Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.