Performance Sports Group (NYSE: PSG) and Dick’s Sporting Goods (NYSE:DKS) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitabiliy, valuation, dividends and institutional ownership.
Risk and Volatility
Performance Sports Group has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500. Comparatively, Dick’s Sporting Goods has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.
Insider & Institutional Ownership
76.3% of Performance Sports Group shares are owned by institutional investors. Comparatively, 78.9% 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Performance Sports Group and Dick’s Sporting Goods, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Sports Group||1||4||1||0||2.00|
|Dick’s Sporting Goods||1||9||19||0||2.62|
Performance Sports Group presently has a consensus price target of $2.83, indicating a potential downside of 18.58%. Dick’s Sporting Goods has a consensus price target of $57.23, indicating a potential upside of 54.59%. Given Dick’s Sporting Goods’ stronger consensus rating and higher probable upside, analysts plainly believe Dick’s Sporting Goods is more favorable than Performance Sports Group.
This table compares Performance Sports Group and Dick’s Sporting Goods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Sports Group||-32.06%||-0.52%||-0.14%|
|Dick’s Sporting Goods||3.57%||18.61%||8.43%|
Dick’s Sporting Goods pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. Performance Sports Group does not pay a dividend. Dick’s Sporting Goods pays out 26.3% of its earnings in the form of a dividend. Performance Sports Group has increased its dividend for 2 consecutive years.
Valuation and Earnings
This table compares Performance Sports Group 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|
|Performance Sports Group||N/A||N/A||N/A||($4.25)||-0.82|
|Dick’s Sporting Goods||$8.09 billion||0.51||$724.69 million||$2.59||14.29|
Dick’s Sporting Goods has higher revenue and earnings than Performance Sports Group. Performance Sports Group is trading at a lower price-to-earnings ratio than Dick’s Sporting Goods, indicating that it is currently the more affordable of the two stocks.
Dick’s Sporting Goods beats Performance Sports Group on 12 of the 14 factors compared between the two stocks.
About Performance Sports Group
Old PSG Wind-down Ltd, formerly Performance Sports Group Ltd, is a Canada-based company, which is engaged in the design, manufacture and distribution of performance sports equipment for ice hockey, roller hockey, baseball and softball, lacrosse, as well as related apparel and accessories, including soccer apparel. Its segments include Hockey, Baseball/Softball and Other Sports. The Hockey segment includes the Bauer and Mission brands. The Baseball/Softball segment includes the Easton and Combat brands. Its Other Sports includes the Lacrosse and Soccer operating segments, which includes the Maverik and Cascade brands for Lacrosse, and the Inaria brand for Soccer. The ice hockey products include skates, helmets, protective gear, sticks, team apparel and accessories. The roller hockey products include skates, helmets, protective gear, sticks and accessories. The baseball and softball products include bats, gloves, helmets, protective gear, apparel and accessories.
About Dick’s Sporting Goods
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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