Head to Head Comparison: Big 5 Sporting Goods Corporation (BGFV) & Golfsmith International Holdings (GOLF)

Big 5 Sporting Goods Corporation (NASDAQ: BGFV) and Golfsmith International Holdings (NASDAQ:GOLF) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Dividends

Big 5 Sporting Goods Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 8.1%. Golfsmith International Holdings does not pay a dividend. Big 5 Sporting Goods Corporation pays out 54.5% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Big 5 Sporting Goods Corporation and Golfsmith International Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Big 5 Sporting Goods Corporation $1.04 billion 0.15 $58.02 million $1.10 6.73
Golfsmith International Holdings $1.53 billion 0.83 $174.85 million N/A N/A

Golfsmith International Holdings has higher revenue and earnings than Big 5 Sporting Goods Corporation.

Profitability

This table compares Big 5 Sporting Goods Corporation and Golfsmith International Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Big 5 Sporting Goods Corporation 2.30% 11.86% 5.54%
Golfsmith International Holdings N/A N/A N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Big 5 Sporting Goods Corporation and Golfsmith International Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Big 5 Sporting Goods Corporation 0 2 0 0 2.00
Golfsmith International Holdings 0 8 5 0 2.38

Big 5 Sporting Goods Corporation currently has a consensus price target of $9.00, suggesting a potential upside of 21.62%. Golfsmith International Holdings has a consensus price target of $20.36, suggesting a potential upside of 19.89%. Given Big 5 Sporting Goods Corporation’s higher probable upside, research analysts plainly believe Big 5 Sporting Goods Corporation is more favorable than Golfsmith International Holdings.

Summary

Golfsmith International Holdings beats Big 5 Sporting Goods Corporation on 7 of the 12 factors compared between the two stocks.

About Big 5 Sporting Goods Corporation

Big 5 Sporting Goods Corporation is a sporting goods retailer in the western United States. The Company offers a range of products in a sporting goods store format. The Company also offers products online through its e-commerce platform. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a range of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports. The Company purchases merchandise from sporting goods equipment, athletic footwear and apparel manufacturers. It offers various brands, such as adidas, Coleman, Footjoy, JanSport, Rawlings, Spalding, Asics, Columbia, Franklin, Lifetime, Razor, Speedo, Bearpaw, Crocs, Gildan, Mizuno, Rollerblade and Timex. The Company operated 432 stores and an e-commerce platform under the name Big 5 Sporting Goods, as of January 1, 2017.

About Golfsmith International Holdings

Golfsmith International Holdings, Inc, the parent company of Golfsmith International, Inc, is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs.

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