Performance Sports Group (NYSE: PSG) and Big 5 Sporting Goods Corporation (NASDAQ:BGFV) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitabiliy, institutional ownership, earnings, dividends, risk and analyst recommendations.
This table compares Performance Sports Group and Big 5 Sporting Goods Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Sports Group||-32.06%||-0.52%||-0.14%|
|Big 5 Sporting Goods Corporation||2.24%||11.82%||5.50%|
This is a breakdown of recent recommendations and price targets for Performance Sports Group and Big 5 Sporting Goods Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Sports Group||1||4||1||0||2.00|
|Big 5 Sporting Goods Corporation||0||1||1||0||2.50|
Performance Sports Group currently has a consensus price target of $2.83, indicating a potential downside of 18.58%. Big 5 Sporting Goods Corporation has a consensus price target of $17.00, indicating a potential upside of 19.72%. Given Big 5 Sporting Goods Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Big 5 Sporting Goods Corporation is more favorable than Performance Sports Group.
Insider and Institutional Ownership
76.3% of Performance Sports Group shares are owned by institutional investors. Comparatively, 80.7% of Big 5 Sporting Goods Corporation shares are owned by institutional investors. 7.9% of Big 5 Sporting Goods Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Performance Sports Group and Big 5 Sporting Goods Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Performance Sports Group||N/A||N/A||N/A||($4.25)||-0.82|
|Big 5 Sporting Goods Corporation||$1.04 billion||0.30||$56.81 million||$1.07||13.27|
Big 5 Sporting Goods Corporation has higher revenue and earnings than Performance Sports Group. Performance Sports Group is trading at a lower price-to-earnings ratio than Big 5 Sporting Goods Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Performance Sports Group has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500. Comparatively, Big 5 Sporting Goods Corporation has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500.
Big 5 Sporting Goods Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 4.2%. Performance Sports Group does not pay a dividend. Big 5 Sporting Goods Corporation pays out 56.1% of its earnings in the form of a dividend.
Big 5 Sporting Goods Corporation beats Performance Sports Group on 11 of the 12 factors compared between the two stocks.
About Performance Sports Group
Old PSG Wind-down Ltd, formerly Performance Sports Group Ltd, is a Canada-based company, which is engaged in the design, manufacture and distribution of performance sports equipment for ice hockey, roller hockey, baseball and softball, lacrosse, as well as related apparel and accessories, including soccer apparel. Its segments include Hockey, Baseball/Softball and Other Sports. The Hockey segment includes the Bauer and Mission brands. The Baseball/Softball segment includes the Easton and Combat brands. Its Other Sports includes the Lacrosse and Soccer operating segments, which includes the Maverik and Cascade brands for Lacrosse, and the Inaria brand for Soccer. The ice hockey products include skates, helmets, protective gear, sticks, team apparel and accessories. The roller hockey products include skates, helmets, protective gear, sticks and accessories. The baseball and softball products include bats, gloves, helmets, protective gear, apparel and accessories.
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.
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