Comparing Dick’s Sporting Goods (DKS) & Golfsmith International Holdings (GOLF)
Dick’s Sporting Goods (NYSE: DKS) and Golfsmith International Holdings (NASDAQ:GOLF) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Valuation and Earnings
This table compares Dick’s Sporting Goods and Golfsmith International Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dick’s Sporting Goods||$8.28 billion||0.34||$751.31 million||$2.80||9.36|
|Golfsmith International Holdings||$1.53 billion||0.80||$174.85 million||N/A||N/A|
Dick’s Sporting Goods has higher revenue and earnings than Golfsmith International Holdings.
Institutional & Insider Ownership
75.5% of Dick’s Sporting Goods shares are held by institutional investors. 23.1% of Dick’s Sporting Goods shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Dick’s Sporting Goods and Golfsmith International Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dick’s Sporting Goods||3.74%||19.09%||8.54%|
|Golfsmith International Holdings||N/A||N/A||N/A|
This is a breakdown of recent ratings and price targets for Dick’s Sporting Goods and Golfsmith International Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dick’s Sporting Goods||2||23||5||0||2.10|
|Golfsmith International Holdings||0||8||5||0||2.38|
Dick’s Sporting Goods currently has a consensus price target of $40.08, indicating a potential upside of 52.97%. Golfsmith International Holdings has a consensus price target of $20.57, indicating a potential upside of 25.67%. Given Dick’s Sporting Goods’ higher possible upside, equities research analysts clearly believe Dick’s Sporting Goods is more favorable than Golfsmith International Holdings.
Dick’s Sporting Goods pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. Golfsmith International Holdings does not pay a dividend. Dick’s Sporting Goods pays out 24.3% of its earnings in the form of a dividend. Dick’s Sporting Goods has increased its dividend for 2 consecutive years.
Dick’s Sporting Goods beats Golfsmith International Holdings on 10 of the 14 factors compared between the two stocks.
Dick’s Sporting Goods Company Profile
Dick’s Sporting Goods, Inc. is an omni-channel sporting goods retailer offering an assortment of sports equipment, apparel, footwear and accessories in its specialty retail stores primarily in the eastern United States. The Company also owns and operates Golf Galaxy, Field & Stream and other specialty concept stores, and Dick’s Team Sports HQ, an all-in-one youth sports digital platform offering free league management services, mobile applications for scheduling, communications and live scorekeeping, custom uniforms and FanWear and access to donations and sponsorships. The Company offers its products through a content-rich e-commerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront. It offers products to its customers through its retail stores and online. The Company offers hardlines, which include items, such as sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear.
Golfsmith International Holdings Company Profile
Golfsmith International Holdings, Inc, the parent company of Golfsmith International, Inc, is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs.
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