Contrasting Golfsmith International Holdings (GOLF) and Dick’s Sporting Goods (DKS)
Golfsmith International Holdings (NASDAQ: GOLF) and Dick’s Sporting Goods (NYSE:DKS) are both services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
This is a breakdown of recent ratings for Golfsmith International Holdings and Dick’s Sporting Goods, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Golfsmith International Holdings||0||8||5||0||2.38|
|Dick’s Sporting Goods||2||23||5||0||2.10|
Golfsmith International Holdings currently has a consensus price target of $20.36, indicating a potential upside of 20.74%. Dick’s Sporting Goods has a consensus price target of $38.68, indicating a potential upside of 39.44%. Given Dick’s Sporting Goods’ higher possible upside, 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 2.5%. 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. Golfsmith International Holdings has raised its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Golfsmith International Holdings and Dick’s Sporting Goods’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golfsmith International Holdings||$1.53 billion||0.82||$174.85 million||N/A||N/A|
|Dick’s Sporting Goods||$8.28 billion||0.37||$751.31 million||$2.80||9.91|
Dick’s Sporting Goods has higher revenue and earnings than Golfsmith International Holdings.
This table compares Golfsmith International Holdings and Dick’s Sporting Goods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Golfsmith International Holdings||N/A||N/A||N/A|
|Dick’s Sporting Goods||3.74%||19.09%||8.54%|
Institutional & Insider Ownership
77.7% of Dick’s Sporting Goods shares are owned by institutional investors. 23.1% of Dick’s Sporting Goods shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dick’s Sporting Goods beats Golfsmith International Holdings on 9 of the 14 factors compared between the two stocks.
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.
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.
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