SIGNA Sports United (NYSE:SSU) versus Academy Sports and Outdoors (NASDAQ:ASO) Critical Survey

SIGNA Sports United (NYSE:SSU – Get Rating) and Academy Sports and Outdoors (NASDAQ:ASO – Get Rating) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

11.6% of SIGNA Sports United shares are held by institutional investors. Comparatively, 94.6% of Academy Sports and Outdoors shares are held by institutional investors. 0.4% of SIGNA Sports United shares are held by company insiders. Comparatively, 3.5% of Academy Sports and Outdoors shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for SIGNA Sports United and Academy Sports and Outdoors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SIGNA Sports United	0	2	0	0	2.00
Academy Sports and Outdoors	0	1	12	0	2.92

SIGNA Sports United presently has a consensus target price of $5.10, indicating a potential upside of 18.33%. Academy Sports and Outdoors has a consensus target price of $66.57, indicating a potential upside of 11.12%. Given SIGNA Sports United’s higher probable upside, analysts clearly believe SIGNA Sports United is more favorable than Academy Sports and Outdoors.

Risk & Volatility

SIGNA Sports United has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, Academy Sports and Outdoors has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares SIGNA Sports United and Academy Sports and Outdoors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SIGNA Sports United	N/A	N/A	N/A
Academy Sports and Outdoors	9.48%	41.27%	13.38%

Valuation & Earnings

This table compares SIGNA Sports United and Academy Sports and Outdoors’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SIGNA Sports United	$1.15 billion	1.45	-$613.33 million	N/A	N/A
Academy Sports and Outdoors	$6.46 billion	0.73	$671.38 million	$7.10	8.44

Academy Sports and Outdoors has higher revenue and earnings than SIGNA Sports United.

Summary

Academy Sports and Outdoors beats SIGNA Sports United on 10 of the 12 factors compared between the two stocks.

About SIGNA Sports United

(Get Rating)

SIGNA Sports United N.V. operates online sports web shops in the European Union, Switzerland, Norway, the United Kingdom, and the United States. Its product categories include bike, tennis/racket sports, outdoor, and team sports and athleisure. The company is headquartered in Berlin, Germany.

About Academy Sports and Outdoors

(Get Rating)

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational products retailer in the United States. The company sells coolers and drinkware, camping accessories, camping equipment, sunglasses, backpacks, and sports bags; marine equipment and fishing rods, reels, baits, and equipment; firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, optics, airguns, and hunting equipment; team sports equipment, including baseball, football, basketball, soccer, golf, racket sports, and volleyball; fitness equipment and accessories, and nutrition supplies; and patio furniture, outdoor cooking, wheeled goods, trampolines, playsets, watersports, and pet equipment, as well as electronics products, watches, consumables, batteries, etc. It also offers outdoor apparel, seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor and athletic apparel; sporting apparel and apparel for fitness; professional and collegiate team licensed apparel and accessories; casual shoes and slippers, work and western boots, youth footwear, socks, and hunting and seasonal footwear; and boys and girls athletic footwear, running shoes, athletic lifestyle and training shoes, team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Outdoor Gourmet, and Freely brand names. As of June 14, 2022, it operated 260 retail locations in 16 contiguous states. The company also sells merchandise to customers through the academy.com website. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.