DICK’S Sporting Goods (DKS) and Its Peers Critical Analysis

DICK’S Sporting Goods (NYSE:DKS) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its rivals? We will compare DICK’S Sporting Goods to similar companies based on the strength of its risk, analyst recommendations, valuation, earnings, profitability, dividends and institutional ownership.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	3	9	12	0	2.38
DICK’S Sporting Goods Competitors	3669	15592	21615	590	2.46

DICK’S Sporting Goods currently has a consensus price target of $167.53, suggesting a potential upside of 19.00%. As a group, “Specialty Retail” companies have a potential upside of 7.31%. Given DICK’S Sporting Goods’ higher probable upside, research analysts plainly believe DICK’S Sporting Goods is more favorable than its rivals.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
DICK’S Sporting Goods	$21.15 billion	$849.24 million	15.12
DICK’S Sporting Goods Competitors	$7.30 billion	$386.47 million	33.12

DICK’S Sporting Goods has higher revenue and earnings than its rivals. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	3.97%	19.21%	6.07%
DICK’S Sporting Goods Competitors	-3.69%	-14.02%	3.17%

Dividends

DICK’S Sporting Goods pays an annual dividend of $5.00 per share and has a dividend yield of 3.6%. DICK’S Sporting Goods pays out 53.7% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.1% and pay out 35.8% of their earnings in the form of a dividend. DICK’S Sporting Goods has increased its dividend for 11 consecutive years.

Risk and Volatility

DICK’S Sporting Goods has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, DICK’S Sporting Goods’ rivals have a beta of 1.91, indicating that their average share price is 91% more volatile than the S&P 500.

Insider & Institutional Ownership

89.8% of DICK’S Sporting Goods shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 28.9% of DICK’S Sporting Goods shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

DICK’S Sporting Goods beats its rivals on 9 of the 15 factors compared.

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.