Quick verdict: BBWI vs M in 2026

Based on a comprehensive bbwi vs m stock comparison 2026, Bath & Body Works, Inc. (BBWI) demonstrates a clear overall edge across key financial metrics and analyst sentiment when compared to Macy’s, Inc. (M). BBWI leads in growth momentum (despite both facing revenue declines), profitability, and valuation, presenting a more attractive investment profile for potential upside. Furthermore, BBWI is the analysts’ clear favourite, showing significantly higher projected upside. Not investment advice.

BBWI vs M: key metrics side by side

Full side-by-side comparison of BBWI and M across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

BBWI vs M valuation comparison

When considering the bbwi vs m fundamentals and valuation, Bath & Body Works (BBWI) appears significantly more attractive on several key metrics. BBWI boasts a notably lower Price-to-Earnings (P/E) ratio of 6.3x compared to Macy’s (M) at 8.28x, suggesting it is priced more favorably relative to its current earnings. Furthermore, BBWI’s Price-to-Book (P/B) ratio stands at -3.2x, while M’s is 1.09x. A negative P/B for BBWI could indicate accumulated losses or aggressive share buybacks exceeding equity, but paired with a low P/E, it still points towards a potentially undervalued stock.

The Discounted Cash Flow (DCF) analysis further reinforces BBWI’s valuation appeal. BBWI exhibits a substantial DCF upside of +212.0%, indicating a significant potential for its intrinsic value to appreciate from its current price. In contrast, M’s DCF upside is +58.6%. While M also shows considerable upside, BBWI’s projected gain is over three times greater, positioning it as a potentially much cheaper investment based on future cash flow generation. Investors performing a bbwi vs m valuation in 2026 would find BBWI presenting a more compelling entry point.

BBWI vs M growth comparison

In terms of growth, particularly revenue performance, BBWI demonstrates stronger momentum relative to M, despite both companies facing headwinds in the current market environment. BBWI reported a Year-over-Year (YoY) revenue growth of -0.2%, which, while a slight decline, is considerably better than M’s revenue growth of -1.7%. This less severe contraction suggests BBWI is more resilient and potentially better positioned to return to positive growth as market conditions improve.

Beyond top-line revenue, BBWI’s superior profitability margins indirectly contribute to its growth potential by allowing more capital for reinvestment or greater financial stability. BBWI’s net margin of 8.9% and EBITDA margin of 19.26% significantly surpass M’s net margin of 2.84% and EBITDA margin of 8.51%. These stronger margins indicate that BBWI is more efficient at converting sales into profit, a crucial factor for sustainable long-term growth and demonstrating better operational health in a challenging retail sector.

BBWI vs M profitability

When examining profitability, Bath & Body Works (BBWI) significantly outperforms Macy’s (M) across the board. BBWI boasts a net margin of 8.9%, which is more than three times higher than M’s net margin of 2.84%. This stark difference indicates that BBWI is far more efficient at turning its revenue into actual profit, highlighting its operational effectiveness and potentially stronger brand power or cost control measures. Similarly, BBWI’s EBITDA margin stands at 19.26%, substantially greater than M’s 8.51%, further underscoring its superior operational profitability before interest, taxes, depreciation, and amortization.

Both companies report “N/A%” for Return on Equity (ROE), preventing a direct comparison on this specific metric. However, BBWI’s Free Cash Flow (FCF) yield of 22.24% surpasses M’s 20.39%. This higher FCF yield suggests that BBWI is generating more cash flow relative to its market capitalization, providing greater flexibility for debt reduction, share buybacks, or future investments. This robust cash generation capability is a key indicator of financial health and investor returns, establishing BBWI as the more profitable entity in this bbwi vs m profitability comparison.

Analyst ratings: BBWI vs M

The analyst community shows a more favorable outlook for Bath & Body Works (BBWI) compared to Macy’s (M) as of 2026-04-30. Of the 22 analysts covering BBWI, 40.9% currently issue a ‘Buy’ rating. Their consensus price target for BBWI is $21, representing a potential upside of +8.6% from its current price of $19.335. The overall consensus from analysts for BBWI is a ‘Hold’, suggesting that while not an overwhelming buy, there’s a strong proportion of positive sentiment and a clear upward price trajectory anticipated.

In contrast, Macy’s (M) is covered by a larger pool of 40 analysts, but a smaller percentage, 32.5%, recommend a ‘Buy’. The consensus price target for M is $19.2, which implies a downside of -2.3% from its current price of $19.655. Like BBWI, the overall analyst consensus for M is also ‘Hold’. However, the difference in ‘Buy’ percentages and the projected price target — positive for BBWI versus negative for M — clearly indicates that analysts prefer BBWI’s investment potential. This makes BBWI a stronger contender when evaluating bbwi vs m analyst ratings and recommendations.

Should I buy BBWI or M stock in 2026?

For growth investors looking at the bbwi vs m stock comparison 2026, BBWI appears to be the more appealing option. While both companies are currently experiencing revenue declines, BBWI’s revenue growth of -0.2% is considerably less severe than M’s -1.7%. This indicates stronger operational resilience and a better position for BBWI to stabilize and eventually return to positive growth. Furthermore, BBWI’s significantly higher net margin (8.9% vs 2.84%) and EBITDA margin (19.26% vs 8.51%) demonstrate superior efficiency and the ability to generate higher quality earnings, which are crucial for sustainable growth in the long run.

Value investors evaluating bbwi vs m fundamentals and valuation would likely find BBWI more compelling. BBWI’s Price-to-Earnings ratio of 6.3x is notably lower than M’s 8.28x, suggesting that BBWI is undervalued relative to its earnings. The DCF analysis provides a strong indicator, with BBWI projecting an impressive upside of +212.0% compared to M’s +58.6%. This substantial difference in intrinsic value potential points to BBWI offering a much larger margin of safety and greater upside for investors seeking undervalued assets. The negative P/B for BBWI might require deeper analysis but does not negate its P/E and DCF attractiveness.

Regarding income, neither BBWI nor M stand out as strong dividend plays for investors focusing on yield. Both companies currently offer a modest dividend yield of 0.04%. This indicates that if income is your primary investment goal, you might need to explore other stocks. For investors prioritizing growth and value, BBWI presents a more attractive profile. This is not investment advice; always conduct your own thorough research before making investment decisions.

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