how can you say lin is a better buy than bbby. if you look at strictly p/e then maybe it is but i take into account history of how the stock price has performed and my own feeling of what store i rather shop in. to tell you the truth i rather shop in bbby. lin has changed there store formats around so much lately, while bbby has kept the same store format around since i remember. there is a new lin store that just opened and i was amazed that it looks like a bbby store. so i guess lin is conceding that bbby has the better store format. to me bbby is the market leader and is way ahead of lin. P/e or no p/e my money is staying with bbby
Maybe here's the reason why BBBY always has been and probably always will be a better buy than LIN...What do you weigh heavier- possible "room" to grow (LIN), or past history/ current trend/management/culture? (BBBY)
LIN might have the lower/better P/E ratio, but look at these #'s and decide...
52 wk change BBBY-+51.6 LIN- -30.2
All based on last 12 months...
Profit margin BBBY- 6.9 LIN- 4.0
Operating Margin BBBY- 11.0 LIN- 6.5
Return on Assets BBBY- 16.33 LIN- 8.20
Return on Earnings BBBY- 26.38 LIN- 15.16
Cash available BBBY- 147.7M LIN- 6.0M
And I believe Stink called out to any newcomers that the co-ceo's take profits a few times every year...(with the # of shares they own & recv as options, they'd be foolish not to). So shorters or "proppers" might look to scare you with "insider's are dumping you better get out too" tactics, but this is normal- look at the history of the insiders.
I've shopped both stores, and merchandising & customer service were FAR better in BBBY, probably why they are the market leader. Factor in past performance (when was the last time they missed a quarter?), continued SUPERIOR management (the numbers DON'T lie), much better Web presence, etc., and the answer's easy for me...BBBY is the better company & as such, the better buy, and where I would put my money, LONG term.
The reason I dumped BBBY for LIN is market conditions. Stocks go up 2 ways, company grows earnings or brand value increases (basically a P/E multiplier). Both companies have the first thing going. As for the market leader brand value justifying high P/E's....maybe in the early phases of a bull market, but by historical standards I think it is risky to assume that high valuations will continue. Maybe not. It is a risk issue for me. BBBY is higher risk, so you deserve higher rewards if the market rages on. Good luck with it, I'm too squeamish. I want a probable 10%+ return, without risking 50% loss. Such a loss could occur for BBBY if Q4 stinks.