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BBWI vs MTH

BBWI
Bath & Body Works, Inc.
NEUTRAL
Price
$22.20
Market Cap
$4.58B
Sector
Consumer Cyclical
AI Confidence
65%
MTH
Meritage Homes Corporation
NEUTRAL
Price
$67.02
Market Cap
$4.48B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
BBWI
6.87
MTH
12.23
Forward P/E
BBWI
8.55
MTH
9.94
P/B Ratio
BBWI
-2.86
MTH
0.88
P/S Ratio
BBWI
0.62
MTH
0.8
EV/EBITDA
BBWI
6.27
MTH
11.19

Profitability

Gross Margin
BBWI
44.14%
MTH
19.08%
Operating Margin
BBWI
10.1%
MTH
5.84%
Profit Margin
BBWI
9.5%
MTH
6.86%
ROE
BBWI
--
MTH
7.49%
ROA
BBWI
15.29%
MTH
3.9%

Growth

Revenue Growth
BBWI
-1.0%
MTH
-17.7%
Earnings Growth
BBWI
-23.9%
MTH
-51.5%

Financial Health

Debt/Equity
BBWI
--
MTH
0.37
Current Ratio
BBWI
1.21
MTH
14.97
Quick Ratio
BBWI
0.26
MTH
2.15

Dividends

Dividend Yield
BBWI
3.6%
MTH
2.86%
Payout Ratio
BBWI
24.77%
MTH
32.3%

AI Verdict

BBWI NEUTRAL

BBWI's deterministic health score is concerning with a Piotroski F-Score of 4/9, indicating marginal financial stability. The stock appears undervalued based on a low P/E of 6.87 and an intrinsic value estimate of $22.61, close to the current price of $22.20. However, declining revenue and earnings growth, along with negative Price/Book, raise sustainability concerns. While profitability margins and ROA are strong relative to peers, weak recent earnings surprises and bearish technical trends cap upside potential.

Strengths
Attractive valuation with P/E of 6.87 well below sector average of 55.88
High gross margin of 44.14% indicates strong pricing power and cost control
ROA of 15.29% significantly exceeds sector average of 6.28%
Risks
Piotroski F-Score of 4 suggests weak financial health and operational instability
Negative Price/Book ratio (-2.86) indicates shareholder equity deficit or accounting issues
Revenue and earnings declining YoY by -1.00% and -23.90% respectively
MTH NEUTRAL

MTH presents a stark contrast between strong defensive valuation and deteriorating operational health. The Piotroski F-Score of 3/9 indicates weak financial health, corroborated by a severe collapse in earnings (-51.50% YoY) and revenue (-17.70% YoY). While the stock trades below book value (P/B 0.88) and below its Graham Number ($96.94), the growth-based intrinsic value of $38.36 suggests the market is pricing in a significant downturn. The combination of bearish insider activity and four consecutive earnings misses offsets the attractive valuation metrics.

Strengths
Trading below book value (P/B 0.88)
Low leverage with a Debt/Equity ratio of 0.37
Extremely high liquidity (Current Ratio 14.97)
Risks
Severe earnings contraction (-51.50% YoY)
Negative revenue growth trends both YoY and Q/Q
Weak operational efficiency as indicated by Piotroski F-Score (3/9)

Compare Another Pair

BBWI vs MTH: Head-to-Head Comparison

This page compares Bath & Body Works, Inc. (BBWI) and Meritage Homes Corporation (MTH) 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.

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