Head to Head Analysis: DICK’S Sporting Goods (DKS) versus Its Competitors

DICK’S Sporting Goods (NYSE:DKS) is one of 20 publicly-traded companies in the “RETAIL – MISC/DIV” industry, but how does it weigh in compared to its peers? We will compare DICK’S Sporting Goods to similar businesses based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

89.8% of DICK’S Sporting Goods shares are owned by institutional investors. Comparatively, 74.9% of shares of all “RETAIL – MISC/DIV” companies are owned by institutional investors. 32.6% of DICK’S Sporting Goods shares are owned by company insiders. Comparatively, 6.9% of shares of all “RETAIL – MISC/DIV” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares DICK’S Sporting Goods and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DICK’S Sporting Goods	$13.44 billion	$1.17 billion	14.05
DICK’S Sporting Goods Competitors	$13.94 billion	$608.19 million	13.61

DICK’S Sporting Goods’ peers have higher revenue, but lower earnings than DICK’S Sporting Goods. DICK’S Sporting Goods is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

DICK’S Sporting Goods has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, DICK’S Sporting Goods’ peers have a beta of 1.28, suggesting that their average stock price is 28% more volatile than the S&P 500.

Dividends

DICK’S Sporting Goods pays an annual dividend of $4.85 per share and has a dividend yield of 2.5%. DICK’S Sporting Goods pays out 34.7% of its earnings in the form of a dividend. As a group, “RETAIL – MISC/DIV” companies pay a dividend yield of 1.5% and pay out 29.2% of their earnings in the form of a dividend. DICK’S Sporting Goods has raised its dividend for 11 consecutive years.

Profitability

This table compares DICK’S Sporting Goods and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	8.49%	38.06%	11.28%
DICK’S Sporting Goods Competitors	7.47%	8.13%	13.33%

Analyst Recommendations

This is a breakdown of current recommendations for DICK’S Sporting Goods and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	1	9	9	0	2.42
DICK’S Sporting Goods Competitors	207	1721	2642	79	2.56

DICK’S Sporting Goods currently has a consensus price target of $219.56, suggesting a potential upside of 11.80%. As a group, “RETAIL – MISC/DIV” companies have a potential upside of 6.89%. Given DICK’S Sporting Goods’ higher possible upside, equities research analysts clearly believe DICK’S Sporting Goods is more favorable than its peers.

Summary

DICK’S Sporting Goods beats its peers on 8 of the 15 factors compared.

DICK’S Sporting Goods Company Profile

Dick’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.