Tile Shop (NASDAQ:TTSH – Get Free Report) and Bed Bath & Beyond (NASDAQ:BBBY – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Tile Shop and Bed Bath & Beyond’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tile Shop | 3.34% | 11.23% | 3.77% |
| Bed Bath & Beyond | -20.54% | N/A | -18.68% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Tile Shop and Bed Bath & Beyond, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tile Shop | 0 | 0 | 0 | 0 | N/A |
| Bed Bath & Beyond | 5 | 0 | 0 | 0 | 1.00 |
Institutional & Insider Ownership
35.1% of Tile Shop shares are owned by institutional investors. Comparatively, 64.2% of Bed Bath & Beyond shares are owned by institutional investors. 36.5% of Tile Shop shares are owned by insiders. Comparatively, 1.7% of Bed Bath & Beyond shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Tile Shop and Bed Bath & Beyond’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tile Shop | $385.20 million | 0.61 | $15.70 million | $0.29 | 18.03 |
| Bed Bath & Beyond | $6.21 billion | 0.01 | -$559.62 million | ($15.20) | -0.01 |
Tile Shop has higher earnings, but lower revenue than Bed Bath & Beyond. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than Tile Shop, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Tile Shop has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
Summary
Tile Shop beats Bed Bath & Beyond on 8 of the 12 factors compared between the two stocks.
About Tile Shop
Tile Shop Holdings, Inc. operates as a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States. It offers natural stone products, such as marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products, including ceramic, porcelain, glass, cement, wood look, and metal and luxury vinyl tiles primarily under the Rush River and Fired Earth brands. The company also manufactures setting and maintenance materials, such as thinset, grout, and sealers under the Superior brand name; accessories, including installation tools, shower and bath shelves, drains, and related products; and offers customers delivery service through third-party freight providers. Tile Shop Holdings, Inc. was founded in 1985 and is headquartered in Plymouth, Minnesota.
About Bed Bath & Beyond
Bed Bath & Beyond, Inc. engages in the operation of retail stores and retails domestics merchandise and home furnishings. Its products include domestic merchandise and home furnishings such as bed linens and related items, bath items, kitchen textiles, kitchen and tabletop items, fine tabletop, basic house wares, general home furnishings, and consumables. The company was founded by Warren Eisenberg and Leonard Feinstein in 1971 and is headquartered in Union, NJ.
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