Head to Head Contrast: Foot Locker (FL) vs. Finish Line (FINL)

Foot Locker (NYSE: FL) and Finish Line (NASDAQ:FINL) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Profitability

This table compares Foot Locker and Finish Line’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foot Locker 3.65% 19.32% 13.49%
Finish Line 0.78% 6.32% 3.95%

Valuation & Earnings

This table compares Foot Locker and Finish Line’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Foot Locker $7.78 billion 0.68 $284.00 million $4.11 10.69
Finish Line $1.84 billion 0.29 $14.41 million $0.69 19.48

Foot Locker has higher revenue and earnings than Finish Line. Foot Locker is trading at a lower price-to-earnings ratio than Finish Line, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Foot Locker has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Finish Line has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Dividends

Foot Locker pays an annual dividend of $1.38 per share and has a dividend yield of 3.1%. Finish Line pays an annual dividend of $0.46 per share and has a dividend yield of 3.4%. Foot Locker pays out 33.6% of its earnings in the form of a dividend. Finish Line pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Foot Locker has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Foot Locker and Finish Line, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foot Locker 1 10 16 0 2.56
Finish Line 3 15 1 0 1.89

Foot Locker presently has a consensus price target of $54.70, indicating a potential upside of 24.52%. Finish Line has a consensus price target of $11.34, indicating a potential downside of 15.61%. Given Foot Locker’s stronger consensus rating and higher probable upside, analysts plainly believe Foot Locker is more favorable than Finish Line.

Insider and Institutional Ownership

95.2% of Foot Locker shares are owned by institutional investors. Comparatively, 86.6% of Finish Line shares are owned by institutional investors. 2.9% of Foot Locker shares are owned by insiders. Comparatively, 6.0% of Finish Line shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Foot Locker beats Finish Line on 13 of the 17 factors compared between the two stocks.

Foot Locker Company Profile

Foot Locker, Inc., through its subsidiaries, operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02. The Direct-to-Customers segment sells athletic footwear, apparel, equipment, and team licensed merchandise for high school and other athletes through Internet and mobile sites, and catalogs. This segment operates sites for eastbay.com, final-score.com, and eastbayteamsales.com, as well as footlocker.com, ladyfootlocker.com, six02.com, kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, footlocker.au, runnerspoint.com, and sidestep-shoes.com. As of February 3, 2018, the company operated 3,310 stores in 24 countries in North America, Europe, Australia, and New Zealand, as well as 98 franchised Foot Locker stores in the Middle East and 14 franchised Runners Point stores in Germany. Foot Locker, Inc. was founded in 1879 and is headquartered in New York, New York.

Finish Line Company Profile

The Finish Line, Inc., together with its subsidiaries, operates as a retailer of athletic shoes, apparel, and accessories for men, women, and kids in the United States. The company offers athletic shoes, as well as an assortment of apparel and accessories of Nike, Brand Jordan, adidas, Under Armour, Puma, and other brands. It engages in the in-store and online retail of athletic shoes for Macy's Retail Holdings, Inc.; Macy's Puerto Rico, Inc.; and Macys.com, Inc., as well as online at macys.com. As of April 2, 2017, the company operated 573 Finish Line stores in 44 states in the United States and Puerto Rico. It also operates e-commerce site, finishline.com and mobile commerce site, m.finishline.com. The company was founded in 1976 and is based in Indianapolis, Indiana.

Receive News & Ratings for Foot Locker Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Foot Locker and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply