DICK’S Sporting Goods (NYSE:DKS – Get Free Report) and GrowGeneration (NASDAQ:GRWG – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.
Risk & Volatility
DICK’S Sporting Goods has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, GrowGeneration has a beta of 2.51, indicating that its stock price is 151% more volatile than the S&P 500.
Earnings & Valuation
This table compares DICK’S Sporting Goods and GrowGeneration”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DICK’S Sporting Goods | $19.20 billion | 0.64 | $849.24 million | $10.52 | 13.00 |
| GrowGeneration | $161.74 million | 0.63 | -$24.05 million | ($0.27) | -6.39 |
DICK’S Sporting Goods has higher revenue and earnings than GrowGeneration. GrowGeneration 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.
Profitability
This table compares DICK’S Sporting Goods and GrowGeneration’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DICK’S Sporting Goods | 4.71% | 22.22% | 7.02% |
| GrowGeneration | -10.07% | -17.44% | -11.52% |
Institutional and Insider Ownership
89.8% of DICK’S Sporting Goods shares are owned by institutional investors. Comparatively, 36.0% of GrowGeneration shares are owned by institutional investors. 28.9% of DICK’S Sporting Goods shares are owned by company insiders. Comparatively, 8.1% of GrowGeneration shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for DICK’S Sporting Goods and GrowGeneration, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DICK’S Sporting Goods | 1 | 3 | 12 | 1 | 2.76 |
| GrowGeneration | 1 | 1 | 1 | 0 | 2.00 |
DICK’S Sporting Goods presently has a consensus price target of $256.88, indicating a potential upside of 87.88%. GrowGeneration has a consensus price target of $2.50, indicating a potential upside of 44.93%. Given DICK’S Sporting Goods’ stronger consensus rating and higher possible upside, equities research analysts plainly believe DICK’S Sporting Goods is more favorable than GrowGeneration.
Summary
DICK’S Sporting Goods beats GrowGeneration on 14 of the 15 factors compared between the two stocks.
About DICK’S Sporting Goods
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.
About GrowGeneration
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. The company engages in the marketing and distribution of nutrients, additives, growing media, lighting, and environmental control systems, as well as other indoor and outdoor growing products. It operates a chain of stores in California, Colorado, Michigan, Maine, Oklahoma, Oregon, Washington, Montana, New York, Ohio, Mississippi, Missouri, Arizona, Rhode Island, Florida, Massachusetts, Virginia, New Jersey, and New Mexico, as well as growgeneration.com, an online superstore for cultivators, a wholesale business for resellers, HRG Distribution, and benching, racking, and storage solutions and MMI. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.
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