BBY vs. IP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at BBY and IP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | BBY | IP |
|---|---|---|
| Company Name | Best Buy Co., Inc. | International Paper Company |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Materials |
| GICS Industry | Specialty Retail | Containers & Packaging |
| Market Capitalization | 16.17 billion USD | 24.64 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | April 18, 1985 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of BBY and IP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | BBY | IP |
|---|---|---|
| 5-Day Price Return | 0.43% | 0.02% |
| 13-Week Price Return | 6.20% | -9.15% |
| 26-Week Price Return | 23.67% | -5.12% |
| 52-Week Price Return | -21.34% | -2.16% |
| Month-to-Date Return | 1.76% | 0.56% |
| Year-to-Date Return | -10.31% | -13.30% |
| 10-Day Avg. Volume | 2.68M | 3.62M |
| 3-Month Avg. Volume | 3.47M | 4.09M |
| 3-Month Volatility | 29.13% | 34.35% |
| Beta | 1.40 | 1.13 |
Profitability
Return on Equity (TTM)
BBY
27.37%
Specialty Retail Industry
- Max
- 64.63%
- Q3
- 37.13%
- Median
- 19.07%
- Q1
- 10.79%
- Min
- -16.66%
BBY’s Return on Equity of 27.37% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.
IP
-0.20%
Containers & Packaging Industry
- Max
- 36.99%
- Q3
- 19.86%
- Median
- 10.47%
- Q1
- 6.76%
- Min
- -0.20%
IP has a negative Return on Equity of -0.20%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Net Profit Margin (TTM)
BBY
1.87%
Specialty Retail Industry
- Max
- 21.04%
- Q3
- 10.99%
- Median
- 6.08%
- Q1
- 2.46%
- Min
- -4.37%
Falling into the lower quartile for the Specialty Retail industry, BBY’s Net Profit Margin of 1.87% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
IP
-0.12%
Containers & Packaging Industry
- Max
- 10.84%
- Q3
- 8.25%
- Median
- 4.91%
- Q1
- 3.65%
- Min
- -0.12%
IP has a negative Net Profit Margin of -0.12%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
BBY
2.48%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 16.40%
- Median
- 9.28%
- Q1
- 4.05%
- Min
- -10.63%
BBY’s Operating Profit Margin of 2.48% is in the lower quartile for the Specialty Retail industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
IP
-0.07%
Containers & Packaging Industry
- Max
- 22.03%
- Q3
- 13.09%
- Median
- 8.06%
- Q1
- 6.46%
- Min
- -0.07%
IP has a negative Operating Profit Margin of -0.07%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | BBY | IP |
|---|---|---|
| Return on Equity (TTM) | 27.37% | -0.20% |
| Return on Assets (TTM) | 5.09% | -0.08% |
| Net Profit Margin (TTM) | 1.87% | -0.12% |
| Operating Profit Margin (TTM) | 2.48% | -0.07% |
| Gross Profit Margin (TTM) | 22.54% | 28.30% |
Financial Strength
Current Ratio (MRQ)
BBY
1.04
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.81
- Median
- 1.38
- Q1
- 1.15
- Min
- 0.52
BBY’s Current Ratio of 1.04 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
IP
1.33
Containers & Packaging Industry
- Max
- 1.96
- Q3
- 1.45
- Median
- 1.33
- Q1
- 1.09
- Min
- 0.87
IP’s Current Ratio of 1.33 aligns with the median group of the Containers & Packaging industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
BBY
0.43
Specialty Retail Industry
- Max
- 3.44
- Q3
- 1.57
- Median
- 0.60
- Q1
- 0.22
- Min
- 0.00
BBY’s Debt-to-Equity Ratio of 0.43 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
IP
0.53
Containers & Packaging Industry
- Max
- 4.15
- Q3
- 2.03
- Median
- 1.20
- Q1
- 0.53
- Min
- 0.23
Falling into the lower quartile for the Containers & Packaging industry, IP’s Debt-to-Equity Ratio of 0.53 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
BBY
256.43
Specialty Retail Industry
- Max
- 48.12
- Q3
- 39.12
- Median
- 14.13
- Q1
- 3.63
- Min
- -36.00
With an Interest Coverage Ratio of 256.43, BBY demonstrates a superior capacity to service its debt, placing it well above the typical range for the Specialty Retail industry. This stems from either robust earnings or a conservative debt load.
IP
1.71
Containers & Packaging Industry
- Max
- 13.16
- Q3
- 8.10
- Median
- 3.38
- Q1
- 2.83
- Min
- 1.06
In the lower quartile for the Containers & Packaging industry, IP’s Interest Coverage Ratio of 1.71 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | BBY | IP |
|---|---|---|
| Current Ratio (MRQ) | 1.04 | 1.33 |
| Quick Ratio (MRQ) | 0.36 | 0.96 |
| Debt-to-Equity Ratio (MRQ) | 0.43 | 0.53 |
| Interest Coverage Ratio (TTM) | 256.43 | 1.71 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
BBY
5.00%
Specialty Retail Industry
- Max
- 6.48%
- Q3
- 2.84%
- Median
- 1.04%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 5.00%, BBY offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.
IP
3.30%
Containers & Packaging Industry
- Max
- 7.14%
- Q3
- 4.65%
- Median
- 3.69%
- Q1
- 2.00%
- Min
- 0.00%
IP’s Dividend Yield of 3.30% is consistent with its peers in the Containers & Packaging industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
BBY
103.47%
Specialty Retail Industry
- Max
- 192.64%
- Q3
- 79.43%
- Median
- 26.55%
- Q1
- 0.00%
- Min
- 0.00%
BBY’s Dividend Payout Ratio of 103.47% is in the upper quartile for the Specialty Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
IP
180.00%
Containers & Packaging Industry
- Max
- 222.75%
- Q3
- 132.16%
- Median
- 65.79%
- Q1
- 28.53%
- Min
- 0.00%
IP’s Dividend Payout Ratio of 180.00% is in the upper quartile for the Containers & Packaging industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | BBY | IP |
|---|---|---|
| Dividend Yield (TTM) | 5.00% | 3.30% |
| Dividend Payout Ratio (TTM) | 103.47% | 180.00% |
Valuation
Price-to-Earnings Ratio (TTM)
BBY
20.68
Specialty Retail Industry
- Max
- 47.04
- Q3
- 27.74
- Median
- 23.51
- Q1
- 13.77
- Min
- 7.47
BBY’s P/E Ratio of 20.68 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
IP
--
Containers & Packaging Industry
- Max
- 24.22
- Q3
- 20.28
- Median
- 17.07
- Q1
- 15.06
- Min
- 7.79
P/E Ratio data for IP is currently unavailable.
Price-to-Sales Ratio (TTM)
BBY
0.39
Specialty Retail Industry
- Max
- 5.77
- Q3
- 2.79
- Median
- 1.21
- Q1
- 0.53
- Min
- 0.09
In the lower quartile for the Specialty Retail industry, BBY’s P/S Ratio of 0.39 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
IP
1.12
Containers & Packaging Industry
- Max
- 1.99
- Q3
- 1.17
- Median
- 0.94
- Q1
- 0.55
- Min
- 0.31
IP’s P/S Ratio of 1.12 aligns with the market consensus for the Containers & Packaging industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
BBY
5.15
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.92
- Median
- 3.98
- Q1
- 1.86
- Min
- 0.55
BBY’s P/B Ratio of 5.15 is within the conventional range for the Specialty Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
IP
1.33
Containers & Packaging Industry
- Max
- 4.79
- Q3
- 3.32
- Median
- 2.14
- Q1
- 1.60
- Min
- 0.89
IP’s P/B Ratio of 1.33 is in the lower quartile for the Containers & Packaging industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | BBY | IP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.68 | -- |
| Price-to-Sales Ratio (TTM) | 0.39 | 1.12 |
| Price-to-Book Ratio (MRQ) | 5.15 | 1.33 |
| Price-to-Free Cash Flow Ratio (TTM) | 8.32 | 48.94 |