Financial Comparison: Winmark (NASDAQ:WINA) and JD Sports Fashion (OTCMKTS:JDSPY)

JD Sports Fashion (OTCMKTS:JDSPY) and Winmark (NASDAQ:WINA) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Profitability

This table compares JD Sports Fashion and Winmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JD Sports Fashion	N/A	N/A	N/A
Winmark	47.09%	-99.47%	103.54%

Insider and Institutional Ownership

73.3% of Winmark shares are held by institutional investors. 10.4% of Winmark shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for JD Sports Fashion and Winmark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JD Sports Fashion	0	4	1	0	2.20
Winmark	0	1	0	0	2.00

Dividends

JD Sports Fashion pays an annual dividend of $0.02 per share and has a dividend yield of 1.6%. Winmark pays an annual dividend of $4.08 per share and has a dividend yield of 1.2%. Winmark pays out 37.0% of its earnings in the form of a dividend. Winmark has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares JD Sports Fashion and Winmark”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JD Sports Fashion	$16.81 billion	0.35	$579.31 million	N/A	N/A
Winmark	$86.06 million	14.32	$41.65 million	$11.02	31.16

JD Sports Fashion has higher revenue and earnings than Winmark.

Summary

JD Sports Fashion beats Winmark on 7 of the 13 factors compared between the two stocks.

About JD Sports Fashion

JD Sports Fashion plc engages in the retail of branded sports fashion and outdoor clothing, footwear, accessories, and equipment for kids, women, and men. It operates through Sports Fashion and Outdoor segments. The company also retails leisure goods, sports goods, fishing gear, camping goods, boats, and bicycles, as well as distributes sports apparel and accessories, footwear, and apparel. It offers its products under the JD, Size?, Footpatrol, Finish Line, Shoe Palace, DTLR, Livestock, Sprinter, Sport Zone, Sizeer, JD Gyms, Tessuti, Scotts, Go Outdoors, Blacks, Millets, Tiso, Ultimate Outdoors, Fishing Republic, and Naylors brands. The company also operates online business. In addition, it licenses fashion brands and operates fitness centers; operates as online own label women's fashion retailer; and manufactures and distributes professional fitness equipment. The company has operations in the United Kingdom, Andorra, Australia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Israel, Italy, Latvia, Lithuania, Malaysia, the Netherlands, New Zealand, Poland, Portugal, Republic of Ireland, Romania, Serbia, Singapore, Slovakia, South Korea, Spain and the Canary Islands, Sweden, Thailand, and the United Arab Emirates. The company was founded in 1981 and is headquartered in Bury, the United Kingdom. JD Sports Fashion plc is a subsidiary of Pentland Group Limited.

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.