BBY vs. DKS, DPZ, WBA, CVNA, YUMC, EXPE, WSM, DRI, ULTA, and CASY
Should you be buying Best Buy stock or one of its competitors? The main competitors of Best Buy include DICK'S Sporting Goods (DKS), Domino's Pizza (DPZ), Walgreens Boots Alliance (WBA), Carvana (CVNA), Yum China (YUMC), Expedia Group (EXPE), Williams-Sonoma (WSM), Darden Restaurants (DRI), Ulta Beauty (ULTA), and Casey's General Stores (CASY). These companies are all part of the "retail/wholesale" sector.
DICK'S Sporting Goods (NYSE:DKS) and Best Buy (NYSE:BBY) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, community ranking, dividends, profitability, earnings, media sentiment, valuation and risk.
DICK'S Sporting Goods has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.5, meaning that its share price is 50% 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.
DICK'S Sporting Goods has a net margin of 8.06% compared to DICK'S Sporting Goods' net margin of 2.86%. DICK'S Sporting Goods' return on equity of 48.45% beat Best Buy's return on equity.
DICK'S Sporting Goods presently has a consensus target price of $208.64, indicating a potential upside of 3.52%. Best Buy has a consensus target price of $84.60, indicating a potential upside of 14.51%. Given DICK'S Sporting Goods' higher probable upside, analysts clearly believe Best Buy is more favorable than DICK'S Sporting Goods.
Best Buy received 130 more outperform votes than DICK'S Sporting Goods when rated by MarketBeat users. Likewise, 74.01% of users gave Best Buy an outperform vote while only 70.44% of users gave DICK'S Sporting Goods an outperform vote.
In the previous week, Best Buy had 8 more articles in the media than DICK'S Sporting Goods. MarketBeat recorded 18 mentions for Best Buy and 10 mentions for DICK'S Sporting Goods. DICK'S Sporting Goods' average media sentiment score of 1.00 beat Best Buy's score of 0.95 indicating that Best Buy is being referred to more favorably in the news media.
DICK'S Sporting Goods pays an annual dividend of $4.40 per share and has a dividend yield of 2.2%. Best Buy pays an annual dividend of $3.76 per share and has a dividend yield of 5.1%. DICK'S Sporting Goods pays out 36.1% of its earnings in the form of a dividend. Best Buy pays out 66.1% 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. DICK'S Sporting Goods has increased its dividend for 10 consecutive years and Best Buy has increased its dividend for 21 consecutive years. Best Buy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
89.8% of DICK'S Sporting Goods shares are held by institutional investors. Comparatively, 81.0% of Best Buy shares are held by institutional investors. 30.8% of DICK'S Sporting Goods shares are held by insiders. Comparatively, 0.6% of Best Buy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
DICK'S Sporting Goods beats Best Buy on 11 of the 21 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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