Big 5 Sporting Goods (BGFV) and Hibbett Sports (HIBB) Head-To-Head Comparison

Big 5 Sporting Goods (NASDAQ: BGFV) and Hibbett Sports (NASDAQ:HIBB) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Dividends

Big 5 Sporting Goods pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. Hibbett Sports does not pay a dividend. Big 5 Sporting Goods pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

76.6% of Big 5 Sporting Goods shares are owned by institutional investors. 7.3% of Big 5 Sporting Goods shares are owned by company insiders. Comparatively, 1.6% of Hibbett Sports shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Big 5 Sporting Goods and Hibbett Sports’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Big 5 Sporting Goods $1.01 billion 0.18 $1.10 million $0.57 14.65
Hibbett Sports $968.22 million 0.57 $35.03 million $1.63 17.76

Hibbett Sports has lower revenue, but higher earnings than Big 5 Sporting Goods. Big 5 Sporting Goods is trading at a lower price-to-earnings ratio than Hibbett Sports, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Big 5 Sporting Goods and Hibbett Sports, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Big 5 Sporting Goods 0 2 0 0 2.00
Hibbett Sports 2 7 6 0 2.27

Big 5 Sporting Goods presently has a consensus target price of $9.00, suggesting a potential upside of 7.78%. Hibbett Sports has a consensus target price of $21.23, suggesting a potential downside of 26.68%. Given Big 5 Sporting Goods’ higher probable upside, equities research analysts clearly believe Big 5 Sporting Goods is more favorable than Hibbett Sports.

Profitability

This table compares Big 5 Sporting Goods and Hibbett Sports’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Big 5 Sporting Goods -0.56% 2.86% 1.24%
Hibbett Sports 3.62% 10.37% 7.29%

Volatility & Risk

Big 5 Sporting Goods has a beta of -0.65, meaning that its share price is 165% less volatile than the S&P 500. Comparatively, Hibbett Sports has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Summary

Hibbett Sports beats Big 5 Sporting Goods on 11 of the 16 factors compared between the two stocks.

Big 5 Sporting Goods Company Profile

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company offers athletic shoes, apparel, and accessories, as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports. It also provides private label items, such as shoes, apparel, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its own trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure; and licensed trademarks, including Beach Feet, Bearpaw, Body Glove, Morrow, and The Realm. As of December 31, 2017, it operated 435 stores and an e-commerce platform under the Big 5 Sporting Goods name. Big 5 Sporting Goods Corporation was founded in 1955 and is headquartered in El Segundo, California.

Hibbett Sports Company Profile

Hibbett Sports, Inc., together with its subsidiaries, operates athletic specialty stores. Its stores offer a range of merchandise, including athletic footwear, athletic and fashion apparel, sports equipment, and related accessories. The company also operates Hibbett.com, an e-commerce Website. As of March 28, 2018, it operated approximately 1,000 stores primarily in small and mid-sized communities in the United States. Hibbett Sports, Inc. was founded in 1945 and is headquartered in Birmingham, Alabama.

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