Analyzing DICK’S Sporting Goods (DKS) and Its Peers

DICK’S Sporting Goods (NYSE:DKS) is one of 20 public companies in the “RETAIL – MISC/DIV” industry, but how does it weigh in compared to its peers? We will compare DICK’S Sporting Goods to similar companies based on the strength of its profitability, risk, institutional ownership, earnings, dividends, valuation and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
DICK’S Sporting Goods	$13.44 billion	$1.17 billion	12.42
DICK’S Sporting Goods Competitors	$13.94 billion	$608.19 million	13.71

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

Dividends

DICK’S Sporting Goods pays an annual dividend of $4.85 per share and has a dividend yield of 2.8%. DICK’S Sporting Goods pays out 34.7% of its earnings in the form of a dividend. As a group, “RETAIL – MISC/DIV” companies pay a dividend yield of 1.5% and pay out 29.2% of their earnings in the form of a dividend. DICK’S Sporting Goods has increased its dividend for 11 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and price targets for DICK’S Sporting Goods and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	1	9	9	0	2.42
DICK’S Sporting Goods Competitors	207	1720	2639	79	2.56

DICK’S Sporting Goods presently has a consensus target price of $220.11, indicating a potential upside of 26.76%. As a group, “RETAIL – MISC/DIV” companies have a potential upside of 6.33%. Given DICK’S Sporting Goods’ higher probable upside, analysts plainly believe DICK’S Sporting Goods is more favorable than its peers.

Volatility & Risk

DICK’S Sporting Goods has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, DICK’S Sporting Goods’ peers have a beta of 1.28, meaning that their average share price is 28% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	8.49%	38.06%	11.28%
DICK’S Sporting Goods Competitors	7.47%	8.13%	13.33%

Insider & Institutional Ownership

89.8% of DICK’S Sporting Goods shares are owned by institutional investors. Comparatively, 74.9% of shares of all “RETAIL – MISC/DIV” companies are owned by institutional investors. 32.6% of DICK’S Sporting Goods shares are owned by company insiders. Comparatively, 6.9% of shares of all “RETAIL – MISC/DIV” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

DICK’S Sporting Goods peers beat DICK’S Sporting Goods on 8 of the 15 factors compared.

DICK’S Sporting Goods Company Profile

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.