No connection

Search Results

BBW vs LEGH

BBW
Build-A-Bear Workshop, Inc.
BEARISH
Price
$40.91
Market Cap
$537.0M
Sector
Consumer Cyclical
AI Confidence
85%
LEGH
Legacy Housing Corporation
BEARISH
Price
$21.10
Market Cap
$502.4M
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
BBW
9.45
LEGH
12.13
Forward P/E
BBW
9.65
LEGH
9.95
P/B Ratio
BBW
3.42
LEGH
0.95
P/S Ratio
BBW
1.01
LEGH
3.05
EV/EBITDA
BBW
7.78
LEGH
9.88

Profitability

Gross Margin
BBW
55.8%
LEGH
47.41%
Operating Margin
BBW
13.83%
LEGH
26.89%
Profit Margin
BBW
9.85%
LEGH
25.41%
ROE
BBW
35.5%
LEGH
8.18%
ROA
BBW
13.07%
LEGH
5.43%

Growth

Revenue Growth
BBW
2.7%
LEGH
-29.4%
Earnings Growth
BBW
-22.1%
LEGH
-41.8%

Financial Health

Debt/Equity
BBW
0.82
LEGH
0.0
Current Ratio
BBW
1.54
LEGH
3.51
Quick Ratio
BBW
0.53
LEGH
1.19

Dividends

Dividend Yield
BBW
2.25%
LEGH
--
Payout Ratio
BBW
19.86%
LEGH
0.0%

AI Verdict

BBW BEARISH

BBW's deterministic health scores signal significant concern: the Piotroski F-Score of 2/9 indicates weak financial health, with minimal positive signals across operational efficiency and profitability sustainability. While the Graham Number ($34.11) and intrinsic value ($30.31) suggest undervaluation, the current price of $40.91 trades at a premium, especially given deteriorating earnings growth (YoY -22.1%) and a recent 6-month price decline of 44.3%. Insider selling totaling $4.69M over six months, including a large sale by the CEO, reinforces bearish sentiment. Despite strong historical earnings surprises and high ROE, the company's growth stagnation and declining profitability undermine long-term confidence.

Strengths
High ROE of 35.50% indicates efficient use of equity capital
Strong gross margin of 55.80% reflects pricing power and cost control
Consistent history of beating earnings estimates (3/4 in last 4 quarters)
Risks
Piotroski F-Score of 2/9 signals severe financial distress risk and weak operational health
Earnings declined sharply by 22.1% YoY despite stable revenue growth of 2.7%
Insider selling activity (8 transactions, $4.69M) suggests lack of confidence from leadership
LEGH BEARISH

LEGH presents a classic 'value trap' scenario, characterized by a weak Piotroski F-Score of 3/9 and severe fundamental deterioration. While the company maintains an exceptionally clean balance sheet with zero debt and high profit margins, these are overshadowed by a collapse in growth, with revenue and earnings plummeting by approximately 30% and 42% respectively. The stock trades below its Graham Number ($29.48) but significantly above its growth-based intrinsic value ($12.18), suggesting that current valuation metrics are lagging behind the rapid decline in operational performance.

Strengths
Zero Debt/Equity ratio indicating no leverage risk
Strong liquidity with a Current Ratio of 3.51
High profitability margins (Gross 47.41%, Profit 25.41%)
Risks
Severe revenue contraction (-29.40% YoY)
Significant earnings decline (-41.80% YoY)
Consistent failure to meet earnings estimates (1/4 beats in last year)

Compare Another Pair

BBW vs LEGH: Head-to-Head Comparison

This page compares Build-A-Bear Workshop, Inc. (BBW) and Legacy Housing Corporation (LEGH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

Home
Terminal
AI
Markets
Profile