Head-To-Head Comparison: Stage Stores (SSI) and Foot Locker (FL)
Stage Stores (NYSE: SSI) and Foot Locker (NYSE:FL) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Valuation & Earnings
This table compares Stage Stores and Foot Locker’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stage Stores||$1.44 billion||0.04||-$37.89 million||($1.82)||-1.07|
|Foot Locker||$7.77 billion||0.68||$664.00 million||$3.98||10.76|
This is a breakdown of current ratings and price targets for Stage Stores and Foot Locker, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stage Stores currently has a consensus price target of $1.00, suggesting a potential downside of 48.72%. Foot Locker has a consensus price target of $51.13, suggesting a potential upside of 19.41%. Given Foot Locker’s stronger consensus rating and higher probable upside, analysts plainly believe Foot Locker is more favorable than Stage Stores.
Insider & Institutional Ownership
53.4% of Stage Stores shares are owned by institutional investors. Comparatively, 88.1% of Foot Locker shares are owned by institutional investors. 7.4% of Stage Stores shares are owned by insiders. Comparatively, 1.7% of Foot Locker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Stage Stores and Foot Locker’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Stage Stores pays an annual dividend of $0.20 per share and has a dividend yield of 10.3%. Foot Locker pays an annual dividend of $1.24 per share and has a dividend yield of 2.9%. Stage Stores pays out -11.0% of its earnings in the form of a dividend. Foot Locker pays out 31.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Stage Stores has increased its dividend for 6 consecutive years and Foot Locker has increased its dividend for 7 consecutive years. Stage Stores is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Stage Stores has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Foot Locker has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
Foot Locker beats Stage Stores on 12 of the 16 factors compared between the two stocks.
Stage Stores Company Profile
Stage Stores, Inc. operates specialty department stores mainly in small and mid-sized towns and communities. The Company’s department stores offer a range of brand name and private label apparel, accessories, cosmetics, footwear and home goods. The Company operates approximately 830 specialty department stores in over 40 states under the BEALLS, GOODY’S, PALAIS ROYAL, PEEBLES and STAGE nameplates and a direct-to-consumer business. The Company’s direct-to-consumer business consists of its e-commerce Website and Send program. The Company’s e-commerce Website includes a range of merchandise categories found in its stores, as well as other product offerings. The Company’s in-store Send program allows customers to have merchandise shipped directly to their homes if the preferred size or color is not available in their local store. The Company’s private label portfolio brands are developed and sourced through agreements with third-party vendors.
Foot Locker Company Profile
Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02. The Direct-to-Customers segment is multi-branded and sells directly to customers through Internet and mobile sites and catalogs. The Direct-to-Customers segment operates the Websites for eastbay.com, final-score.com, eastbayteamsales.com and sp24.com. Additionally, this segment includes the Websites, both desktop and mobile, aligned with the brand names of its store banners (footlocker.com, ladyfootlocker.com, six02.com kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, runnerspoint.com and sidestep-shoes.com).
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