Head-To-Head Review: Hibbett Sports (HIBB) & Golfsmith International (GOLF)

Hibbett Sports (NASDAQ: HIBB) and Golfsmith International (NASDAQ:GOLF) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hibbett Sports and Golfsmith International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hibbett Sports 4 11 4 0 2.00
Golfsmith International 0 7 4 0 2.36

Hibbett Sports presently has a consensus target price of $22.00, indicating a potential upside of 22.91%. Golfsmith International has a consensus target price of $19.58, indicating a potential upside of Infinity. Given Golfsmith International’s stronger consensus rating and higher probable upside, analysts plainly believe Golfsmith International is more favorable than Hibbett Sports.

Profitability

This table compares Hibbett Sports and Golfsmith International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hibbett Sports 3.94% 11.38% 8.09%
Golfsmith International N/A N/A N/A

Earnings and Valuation

This table compares Hibbett Sports and Golfsmith International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Hibbett Sports $972.96 million 0.38 $61.07 million $1.73 10.35
Golfsmith International N/A N/A N/A ($0.06) N/A

Hibbett Sports has higher revenue and earnings than Golfsmith International. Golfsmith International is trading at a lower price-to-earnings ratio than Hibbett Sports, indicating that it is currently the more affordable of the two stocks.

Summary

Hibbett Sports beats Golfsmith International on 5 of the 7 factors compared between the two stocks.

About Hibbett Sports

Hibbett Sports, Inc. operates athletic specialty stores in small and mid-sized markets in the South, Southwest, Mid-Atlantic and the Midwest regions of the United States. As of January 28, 2017, the Company had operated 1,078 stores consisting of 1,059 Hibbett Sports stores and 19 smaller-format Sports Additions athletic shoe stores in 35 states. Its primary retail format is Hibbett Sports, which is an approximately 5,000 square foot store. Hibbett Sports stores offer a merchandising mix of localized apparel, footwear, equipment and accessories designed to appeal to a range of customers within each market. Its 19 Sports Additions stores are enclosed mall-based stores, averaging 2,500 square feet with approximately 90% of merchandise consisting of athletic footwear and the remainder consisting of caps and a limited assortment of apparel. Hibbett Team Sales, Inc., a subsidiary of the Company, is a supplier of customized athletic apparel, equipment and footwear.

About Golfsmith International

Golfsmith International Holdings, Inc, the parent company of Golfsmith International, Inc, is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs.

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