Head-To-Head Contrast: Zalando (OTCMKTS:ZLNDY) vs. DICK’S Sporting Goods (NYSE:DKS)

DICK’S Sporting Goods (NYSE:DKS) and Zalando (OTCMKTS:ZLNDY) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

89.8% of DICK’S Sporting Goods shares are held by institutional investors. 28.9% of DICK’S Sporting Goods shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	3.97%	19.21%	6.07%
Zalando	0.70%	3.46%	1.06%

Valuation and Earnings

This table compares DICK’S Sporting Goods and Zalando”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DICK’S Sporting Goods	$21.15 billion	0.57	$849.24 million	$9.31	14.53
Zalando	$13.97 billion	0.45	$243.36 million	$0.22	58.55

DICK’S Sporting Goods has higher revenue and earnings than Zalando. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for DICK’S Sporting Goods and Zalando, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	3	8	12	0	2.39
Zalando	0	1	1	2	3.25

DICK’S Sporting Goods currently has a consensus price target of $167.20, indicating a potential upside of 23.64%. Given DICK’S Sporting Goods’ higher possible upside, equities analysts plainly believe DICK’S Sporting Goods is more favorable than Zalando.

Risk and Volatility

DICK’S Sporting Goods has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Summary

DICK’S Sporting Goods beats Zalando on 11 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 Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.