Contrasting Bed Bath & Beyond (NYSE:BBBY) and RideNow Group (NASDAQ:RDNW)

RideNow Group (NASDAQ:RDNW) and Bed Bath & Beyond (NYSE:BBBY) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Analyst Ratings

This is a summary of current recommendations for RideNow Group and Bed Bath & Beyond, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
Bed Bath & Beyond	1	4	1	0	2.00

RideNow Group currently has a consensus target price of $7.50, suggesting a potential upside of 27.55%. Bed Bath & Beyond has a consensus target price of $8.67, suggesting a potential upside of 65.46%. Given Bed Bath & Beyond’s stronger consensus rating and higher possible upside, analysts clearly believe Bed Bath & Beyond is more favorable than RideNow Group.

Risk and Volatility

RideNow Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Bed Bath & Beyond has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500.

Earnings & Valuation

This table compares RideNow Group and Bed Bath & Beyond”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.08 billion	0.21	-$52.40 million	($1.24)	-4.74
Bed Bath & Beyond	$1.04 billion	0.37	-$84.62 million	($0.95)	-5.51

RideNow Group has higher revenue and earnings than Bed Bath & Beyond. Bed Bath & Beyond is trading at a lower price-to-earnings ratio than RideNow Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares RideNow Group and Bed Bath & Beyond’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-4.28%	-2,628.57%	-1.85%
Bed Bath & Beyond	-5.76%	-27.60%	-12.99%

Insider & Institutional Ownership

66.1% of RideNow Group shares are owned by institutional investors. Comparatively, 76.3% of Bed Bath & Beyond shares are owned by institutional investors. 55.3% of RideNow Group shares are owned by company insiders. Comparatively, 1.8% of Bed Bath & Beyond shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Bed Bath & Beyond beats RideNow Group on 8 of the 14 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

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.