BBY vs. DKS, YUMC, WBA, DRI, DPZ, ULTA, CASY, BURL, WSM, and TXRH
Should you be buying Best Buy stock or one of its competitors? The main competitors of Best Buy include DICK'S Sporting Goods (DKS), Yum China (YUMC), Walgreens Boots Alliance (WBA), Darden Restaurants (DRI), Domino's Pizza (DPZ), Ulta Beauty (ULTA), Casey's General Stores (CASY), Burlington Stores (BURL), Williams-Sonoma (WSM), and Texas Roadhouse (TXRH). These companies are all part of the "retail/wholesale" sector.
Best Buy (NYSE:BBY) and DICK'S Sporting Goods (NYSE:DKS) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, media sentiment, community ranking, institutional ownership, dividends, profitability and earnings.
Best Buy has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, DICK'S Sporting Goods has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.
Best Buy has higher revenue and earnings than DICK'S Sporting Goods. Best Buy 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.
81.0% of Best Buy shares are owned by institutional investors. Comparatively, 89.8% of DICK'S Sporting Goods shares are owned by institutional investors. 0.6% of Best Buy shares are owned by company insiders. Comparatively, 32.0% of DICK'S Sporting Goods shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
In the previous week, DICK'S Sporting Goods had 1 more articles in the media than Best Buy. MarketBeat recorded 23 mentions for DICK'S Sporting Goods and 22 mentions for Best Buy. Best Buy's average media sentiment score of 1.36 beat DICK'S Sporting Goods' score of 0.53 indicating that Best Buy is being referred to more favorably in the media.
Best Buy pays an annual dividend of $3.76 per share and has a dividend yield of 5.2%. DICK'S Sporting Goods pays an annual dividend of $4.40 per share and has a dividend yield of 2.3%. Best Buy pays out 66.1% of its earnings in the form of a dividend. DICK'S Sporting Goods pays out 36.1% 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.
Best Buy currently has a consensus target price of $84.64, suggesting a potential upside of 16.67%. DICK'S Sporting Goods has a consensus target price of $210.45, suggesting a potential upside of 7.96%. Given Best Buy's higher possible upside, equities analysts clearly believe Best Buy is more favorable than DICK'S Sporting Goods.
DICK'S Sporting Goods has a net margin of 8.06% compared to Best Buy's net margin of 2.86%. Best Buy's return on equity of 48.45% beat DICK'S Sporting Goods' return on equity.
Best Buy received 127 more outperform votes than DICK'S Sporting Goods when rated by MarketBeat users. Likewise, 73.90% of users gave Best Buy an outperform vote while only 70.44% of users gave DICK'S Sporting Goods an outperform vote.
Summary
DICK'S Sporting Goods beats Best Buy on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BBY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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