DICK’S Sporting Goods (NYSE:DKS) vs. Petco Health and Wellness (NASDAQ:WOOF) Head-To-Head Analysis

DICK’S Sporting Goods (NYSE:DKS) and Petco Health and Wellness (NASDAQ:WOOF) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Risk and Volatility

DICK’S Sporting Goods has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Petco Health and Wellness has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500.

Institutional & Insider Ownership

89.8% of DICK’S Sporting Goods shares are held by institutional investors. 32.6% of DICK’S Sporting Goods shares are held by company insiders. Comparatively, 4.4% of Petco Health and Wellness shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for DICK’S Sporting Goods and Petco Health and Wellness, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	0	10	9	0	2.47
Petco Health and Wellness	0	5	3	0	2.38

DICK’S Sporting Goods currently has a consensus target price of $223.0556, indicating a potential downside of 0.49%. Petco Health and Wellness has a consensus target price of $3.7475, indicating a potential upside of 12.20%. Given Petco Health and Wellness’ higher possible upside, analysts plainly believe Petco Health and Wellness is more favorable than DICK’S Sporting Goods.

Profitability

This table compares DICK’S Sporting Goods and Petco Health and Wellness’ 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%
Petco Health and Wellness	-1.10%	-4.29%	-0.92%

Earnings & Valuation

This table compares DICK’S Sporting Goods and Petco Health and Wellness”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DICK’S Sporting Goods	$13.44 billion	1.33	$1.17 billion	$13.98	16.03
Petco Health and Wellness	$6.12 billion	0.17	-$101.82 million	($0.24)	-13.92

DICK’S Sporting Goods has higher revenue and earnings than Petco Health and Wellness. Petco Health and Wellness is trading at a lower price-to-earnings ratio than DICK’S Sporting Goods, indicating that it is currently the more affordable of the two stocks.

Summary

DICK’S Sporting Goods beats Petco Health and Wellness on 12 of the 14 factors compared between the two stocks.

About DICK’S Sporting Goods

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.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.