Big 5 Sporting Goods Corporation (NASDAQ: BGFV) and Golfsmith International Holdings (NASDAQ:GOLF) 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, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares Big 5 Sporting Goods Corporation and Golfsmith International Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Big 5 Sporting Goods Corporation $1.04 billion 0.16 $58.02 million $1.10 6.91
Golfsmith International Holdings $1.53 billion 0.79 $174.85 million N/A N/A

Golfsmith International Holdings has higher revenue and earnings than Big 5 Sporting Goods Corporation.

Profitability

This table compares Big 5 Sporting Goods Corporation and Golfsmith International Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Big 5 Sporting Goods Corporation 2.30% 11.86% 5.54%
Golfsmith International Holdings N/A N/A N/A

Dividends

Big 5 Sporting Goods Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 7.9%. Golfsmith International Holdings does not pay a dividend. Big 5 Sporting Goods Corporation pays out 54.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Big 5 Sporting Goods Corporation and Golfsmith International Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Big 5 Sporting Goods Corporation 0 2 0 0 2.00
Golfsmith International Holdings 0 8 5 0 2.38

Big 5 Sporting Goods Corporation currently has a consensus target price of $9.00, suggesting a potential upside of 18.42%. Golfsmith International Holdings has a consensus target price of $20.36, suggesting a potential upside of 25.27%. Given Golfsmith International Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Golfsmith International Holdings is more favorable than Big 5 Sporting Goods Corporation.

Summary

Golfsmith International Holdings beats Big 5 Sporting Goods Corporation on 8 of the 12 factors compared between the two stocks.

Big 5 Sporting Goods Corporation Company Profile

Big 5 Sporting Goods Corporation is a sporting goods retailer in the western United States. The Company offers a range of products in a sporting goods store format. The Company also offers products online through its e-commerce platform. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a range of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports. The Company purchases merchandise from sporting goods equipment, athletic footwear and apparel manufacturers. It offers various brands, such as adidas, Coleman, Footjoy, JanSport, Rawlings, Spalding, Asics, Columbia, Franklin, Lifetime, Razor, Speedo, Bearpaw, Crocs, Gildan, Mizuno, Rollerblade and Timex. The Company operated 432 stores and an e-commerce platform under the name Big 5 Sporting Goods, as of January 1, 2017.

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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