Analyzing Academy Sports and Outdoors (ASO) and Its Rivals

Academy Sports and Outdoors (NASDAQ:ASO) is one of 33 public companies in the “LEISURE&REC PRD” industry, but how does it compare to its peers? We will compare Academy Sports and Outdoors to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Academy Sports and Outdoors and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Academy Sports and Outdoors	0	8	8	0	2.50
Academy Sports and Outdoors Competitors	121	1007	1906	58	2.61

Academy Sports and Outdoors currently has a consensus price target of $56.31, indicating a potential upside of 4.05%. As a group, “LEISURE&REC PRD” companies have a potential upside of 63.05%. Given Academy Sports and Outdoors’ peers stronger consensus rating and higher probable upside, analysts plainly believe Academy Sports and Outdoors has less favorable growth aspects than its peers.

Volatility and Risk

Academy Sports and Outdoors has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Academy Sports and Outdoors’ peers have a beta of 1.32, suggesting that their average stock price is 32% more volatile than the S&P 500.

Earnings and Valuation

This table compares Academy Sports and Outdoors and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Academy Sports and Outdoors	$5.93 billion	$418.45 million	9.95
Academy Sports and Outdoors Competitors	$1.59 billion	-$21.25 million	-31.37

Academy Sports and Outdoors has higher revenue and earnings than its peers. Academy Sports and Outdoors 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.

Dividends

Academy Sports and Outdoors pays an annual dividend of $0.52 per share and has a dividend yield of 1.0%. Academy Sports and Outdoors pays out 9.6% of its earnings in the form of a dividend. As a group, “LEISURE&REC PRD” companies pay a dividend yield of 2.0% and pay out 66.1% of their earnings in the form of a dividend. Academy Sports and Outdoors has raised its dividend for 3 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Academy Sports and Outdoors	6.55%	19.62%	7.70%
Academy Sports and Outdoors Competitors	-54.65%	-78.84%	-9.30%

Institutional and Insider Ownership

56.5% of shares of all “LEISURE&REC PRD” companies are owned by institutional investors. 3.6% of Academy Sports and Outdoors shares are owned by company insiders. Comparatively, 22.8% of shares of all “LEISURE&REC PRD” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Academy Sports and Outdoors peers beat Academy Sports and Outdoors on 8 of the 15 factors compared.

About Academy Sports and Outdoors

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.