Sally Beauty (NYSE:SBH – Get Free Report) and Big 5 Sporting Goods (NASDAQ:BGFV – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Risk and Volatility
Sally Beauty has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Big 5 Sporting Goods has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Sally Beauty and Big 5 Sporting Goods, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sally Beauty | 1 | 2 | 2 | 0 | 2.20 |
| Big 5 Sporting Goods | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Sally Beauty and Big 5 Sporting Goods’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sally Beauty | 5.26% | 28.11% | 7.05% |
| Big 5 Sporting Goods | -12.14% | -39.67% | -10.70% |
Earnings & Valuation
This table compares Sally Beauty and Big 5 Sporting Goods”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sally Beauty | $3.72 billion | 0.31 | $153.41 million | $1.86 | 6.27 |
| Big 5 Sporting Goods | $795.47 million | 0.04 | -$69.07 million | ($4.20) | -0.34 |
Sally Beauty has higher revenue and earnings than Big 5 Sporting Goods. Big 5 Sporting Goods is trading at a lower price-to-earnings ratio than Sally Beauty, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
42.0% of Big 5 Sporting Goods shares are held by institutional investors. 1.6% of Sally Beauty shares are held by company insiders. Comparatively, 6.0% of Big 5 Sporting Goods 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.
Summary
Sally Beauty beats Big 5 Sporting Goods on 11 of the 14 factors compared between the two stocks.
About Sally Beauty
Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals. This segment also provides products under Wella and L'Oreal brands. The Beauty Systems Group segment offers professional beauty products, such as hair color and care products, skin and nail care products, styling tools, and other beauty items directly to salons and salon professionals through its professional-only stores, e-commerce platforms, and sales force, as well as through franchised stores under the Armstrong McCall store name. This segment also sells products under Paul Mitchell and Wella brands. It operates stores and franchised units in the United States, Puerto Rico, Canada, Mexico, Chile, Peru, the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain, and Germany. The company distributes its products through full-service/exclusive distributors and open-line distributors. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.
About Big 5 Sporting Goods
Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. Its products include athletic shoes, apparel, and accessories. The company also offers a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, and winter and summer recreation, as well as home recreation. It also provides private label items, such as shoes, apparel, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure. It also operates an e-commerce platform under the Big 5 Sporting Goods name. Big 5 Sporting Goods Corporation was founded in 1955 and is headquartered in El Segundo, California.
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