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.
Best Buy (NYSE:BBY) and DICK'S Sporting Goods (NYSE:DKS) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their community ranking, analyst recommendations, dividends, institutional ownership, profitability, risk, media sentiment, valuation and earnings.
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 insiders. Comparatively, 30.8% of DICK'S Sporting Goods shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
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.
Best Buy has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, DICK'S Sporting Goods has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.
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 currently has a consensus target price of $84.60, indicating a potential upside of 14.71%. DICK'S Sporting Goods has a consensus target price of $208.64, indicating a potential upside of 3.83%. Given Best Buy's higher possible upside, analysts plainly 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 7 more articles in the media than DICK'S Sporting Goods. MarketBeat recorded 21 mentions for Best Buy and 14 mentions for DICK'S Sporting Goods. Best Buy's average media sentiment score of 0.98 beat DICK'S Sporting Goods' score of 0.93 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 2.2%. 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.
Summary
DICK'S Sporting Goods beats Best Buy on 11 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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