DICK'S Sporting Goods (NYSE:DKS) and Big 5 Sporting Goods (NASDAQ:BGFV) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Analyst Ratings
This is a summary of recent recommendations for DICK'S Sporting Goods and Big 5 Sporting Goods, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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DICK'S Sporting Goods | 2 | 11 | 12 | 0 | 2.40 |
Big 5 Sporting Goods | 0 | 0 | 1 | 0 | 3.00 |
DICK'S Sporting Goods presently has a consensus target price of $60.6667, suggesting a potential downside of 15.00%. Big 5 Sporting Goods has a consensus target price of $16.00, suggesting a potential upside of 18.52%. Given Big 5 Sporting Goods' stronger consensus rating and higher probable upside, analysts clearly believe Big 5 Sporting Goods is more favorable than DICK'S Sporting Goods.
Risk and Volatility
DICK'S Sporting Goods has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Big 5 Sporting Goods has a beta of 2.57, indicating that its share price is 157% more volatile than the S&P 500.
Profitability
This table compares DICK'S Sporting Goods and Big 5 Sporting Goods' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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DICK'S Sporting Goods | 4.20% | 25.52% | 6.49% |
Big 5 Sporting Goods | 3.55% | 17.49% | 4.76% |
Valuation and Earnings
This table compares DICK'S Sporting Goods and Big 5 Sporting Goods' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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DICK'S Sporting Goods | $8.75 billion | 0.73 | $297.46 million | $3.69 | 19.34 |
Big 5 Sporting Goods | $996.49 million | 0.30 | $8.44 million | $0.41 | 32.93 |
DICK'S Sporting Goods has higher revenue and earnings than Big 5 Sporting Goods. DICK'S Sporting Goods is trading at a lower price-to-earnings ratio than Big 5 Sporting Goods, indicating that it is currently the more affordable of the two stocks.
Dividends
DICK'S Sporting Goods pays an annual dividend of $1.25 per share and has a dividend yield of 1.8%. Big 5 Sporting Goods pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. DICK'S Sporting Goods pays out 33.9% of its earnings in the form of a dividend. Big 5 Sporting Goods pays out 97.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
76.5% of DICK'S Sporting Goods shares are owned by institutional investors. Comparatively, 33.1% of Big 5 Sporting Goods shares are owned by institutional investors. 30.6% of DICK'S Sporting Goods shares are owned by insiders. Comparatively, 7.5% of Big 5 Sporting Goods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
DICK'S Sporting Goods beats Big 5 Sporting Goods on 12 of the 16 factors compared between the two stocks.