DICK’S Sporting Goods (NYSE:DKS) versus JOANN (NASDAQ:JOANQ) Financial Analysis

DICK’S Sporting Goods (NYSE:DKS) and JOANN (NASDAQ:JOANQ) are both consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current ratings for DICK’S Sporting Goods and JOANN, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	0	11	11	0	2.50
JOANN	0	0	0	0	N/A

DICK’S Sporting Goods presently has a consensus price target of $208.64, indicating a potential upside of 6.89%. Given DICK’S Sporting Goods’ higher possible upside, equities analysts clearly believe DICK’S Sporting Goods is more favorable than JOANN.

Risk & Volatility

DICK’S Sporting Goods has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, JOANN has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Institutional & Insider Ownership

89.8% of DICK’S Sporting Goods shares are held by institutional investors. Comparatively, 72.1% of JOANN shares are held by institutional investors. 30.8% of DICK’S Sporting Goods shares are held by company insiders. Comparatively, 73.4% of JOANN shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares DICK’S Sporting Goods and JOANN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	8.06%	42.99%	11.97%
JOANN	-11.10%	N/A	-4.99%

Earnings & Valuation

This table compares DICK’S Sporting Goods and JOANN’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DICK’S Sporting Goods	$12.98 billion	1.24	$1.05 billion	$12.18	16.02
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.02

DICK’S Sporting Goods has higher revenue and earnings than JOANN. JOANN 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.

Summary

DICK’S Sporting Goods beats JOANN on 12 of the 13 factors compared between the two stocks.

About DICK’S Sporting Goods

DICK'S Sporting Goods, Inc., together with its subsidiaries, operates as an omni-channel sporting goods retailer primarily in the United States. The company provides hardlines, includes sporting goods equipment, fitness equipment, golf equipment, and fishing gear products; apparel; and footwear and accessories. It also owns and operates Sporting Goods, Golf Galaxy, Public Lands, Moosejaw, and Going Going Gone! specialty concept stores; and DICK'S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for scheduling, communications, live scorekeeping, and video streaming. The company offers its products online, as well as through its mobile apps. The company was formerly known as Dick'S Clothing and Sporting Goods, Inc. and changed its name to DICK'S Sporting Goods, Inc. in April 1999. DICK'S Sporting Goods, Inc. was incorporated in 1948 and is based in Coraopolis, Pennsylvania.

About JOANN

JOANN Inc. involved in the sewing and fabrics industry. It serves as a convenient single source for all of the supplies, guidance and inspiration needed to achieve any project or passion. JOANN Inc. is based in HUDSON, Ohio.