Big Lots (BIG) versus The Competition Head to Head Survey

Big Lots (NYSE: BIG) is one of 12 public companies in the “Variety stores” industry, but how does it compare to its rivals? We will compare Big Lots to similar businesses based on the strength of its risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Volatility & Risk

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Big Lots has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Big Lots’ rivals have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Big Lots and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Big Lots 0 6 7 0 2.54
Big Lots Competitors 164 1264 1700 90 2.53

Big Lots currently has a consensus price target of $57.27, indicating a potential upside of 33.85%. As a group, “Variety stores” companies have a potential upside of 1.56%. Given Big Lots’ stronger consensus rating and higher possible upside, research analysts clearly believe Big Lots is more favorable than its rivals.

Profitability

This table compares Big Lots and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Big Lots 3.60% 31.12% 11.51%
Big Lots Competitors 3.76% 15.00% 6.64%

Dividends

Big Lots pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. Big Lots pays out 27.0% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.6% and pay out 36.6% of their earnings in the form of a dividend. Big Lots has increased its dividend for 3 consecutive years. Big Lots is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Big Lots and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Big Lots $5.27 billion $189.83 million 9.62
Big Lots Competitors $65.63 billion $1.74 billion 22.12

Big Lots’ rivals have higher revenue and earnings than Big Lots. Big Lots is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

76.5% of shares of all “Variety stores” companies are held by institutional investors. 1.7% of Big Lots shares are held by company insiders. Comparatively, 13.8% of shares of all “Variety stores” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Big Lots beats its rivals on 8 of the 15 factors compared.

Big Lots Company Profile

Big Lots, Inc., through its subsidiaries, operates as a non-traditional, discount retailer in the United States. The company offers products under various merchandising categories, such as food category that includes beverage and grocery, candy and snacks, and specialty foods departments; consumables category, which comprises health and beauty, plastics, paper, chemical, and pet departments; soft home category that consists of home décor, frames, fashion bedding, utility bedding, bath, window, decorative textile, and area rugs departments; hard home category, including small appliances, table top, food preparation, stationery, greeting cards, and home maintenance departments; and furniture category consisting of upholstery, mattress, ready-to-assemble, and case goods departments. It also provides merchandise under the seasonal category that includes lawn and garden, summer, Christmas, and other holiday departments; and electronics, toys, and accessories category, including electronics, jewelry, hosiery, toys, and infant accessories departments. As of November 7, 2017, it operated 1,428 stores in 47 states. Big Lots, Inc. was founded in 1967 and is headquartered in Columbus, Ohio.

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