Academy Sports and Outdoors (NASDAQ:ASO) & DICK’S Sporting Goods (NYSE:DKS) Critical Review

Academy Sports and Outdoors (NASDAQ:ASO) and DICK’S Sporting Goods (NYSE:DKS) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Academy Sports and Outdoors and DICK’S Sporting Goods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Academy Sports and Outdoors N/A N/A N/A
DICK’S Sporting Goods 3.03% 19.21% 4.68%

Institutional and Insider Ownership

70.4% of DICK’S Sporting Goods shares are owned by institutional investors. 30.6% 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Academy Sports and Outdoors and DICK’S Sporting Goods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Academy Sports and Outdoors 0 0 7 0 3.00
DICK’S Sporting Goods 0 14 11 0 2.44

Academy Sports and Outdoors currently has a consensus target price of $19.58, suggesting a potential upside of 23.79%. DICK’S Sporting Goods has a consensus target price of $52.42, suggesting a potential downside of 10.41%. Given Academy Sports and Outdoors’ stronger consensus rating and higher probable upside, research analysts plainly believe Academy Sports and Outdoors is more favorable than DICK’S Sporting Goods.

Earnings & Valuation

This table compares Academy Sports and Outdoors and DICK’S Sporting Goods’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Academy Sports and Outdoors N/A N/A N/A N/A N/A
DICK’S Sporting Goods $8.75 billion 0.60 $297.46 million $3.69 15.86

DICK’S Sporting Goods has higher revenue and earnings than Academy Sports and Outdoors.

Summary

DICK’S Sporting Goods beats Academy Sports and Outdoors on 7 of the 9 factors compared between the two stocks.

About Academy Sports and Outdoors

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational products retailer in the United States. The company sells a range of sporting and outdoor recreation products, including sporting equipment, apparel, footwear, camping gear, patio furniture, outdoor cooking equipment, and hunting and fishing gears primarily under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, and Outdoor Gourmet brand names. As of August 1, 2020, it operated 259 Academy Sports + Outdoors retail locations in 16 states and three distribution centers located in Katy, Texas, Twiggs County, Georgia, and Cookeville, Tennessee. The company also sells merchandise to customers via academy.com website. Academy Sports and Outdoors, Inc. was founded in 1938 and is based in Katy, Texas.

About DICK’S Sporting Goods

DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as a sporting goods retailer primarily in the eastern United States. It provides hardlines, including sporting goods equipment, fitness equipment, golf equipment, and hunting and fishing gear products; apparel; and footwear and accessories. The company also owns and operates Golf Galaxy, Field & Stream, and other specialty concept stores; and e-commerce websites, as well as GameChanger, a youth sports mobile app for scheduling, communications, and live scorekeeping. As of August 01, 2020, it operated 726 DICK'S Sporting Goods stores. The company was formerly known as Dick'S Clothing and Sporting Goods, Inc. and changed its name to DICK'S Sporting Goods, Inc. in April 1999. DICK'S Sporting Goods, Inc. was founded in 1948 and is headquartered in Coraopolis, Pennsylvania.

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