Contrasting Sports Direct (SDISY) & Nautilus (NLS)

Sports Direct (OTCMKTS: SDISY) and Nautilus (NYSE:NLS) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Profitability

This table compares Sports Direct and Nautilus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sports Direct N/A N/A N/A
Nautilus 6.68% 15.45% 8.67%

Valuation and Earnings

This table compares Sports Direct and Nautilus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sports Direct $4.20 billion 0.67 $297.39 million $0.30 34.67
Nautilus $406.18 million 1.21 $26.26 million $0.88 18.41

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

Risk & Volatility

Sports Direct has a beta of -0.4, indicating that its stock price is 140% less volatile than the S&P 500. Comparatively, Nautilus has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Sports Direct and Nautilus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sports Direct 1 0 0 0 1.00
Nautilus 1 3 4 0 2.38

Nautilus has a consensus price target of $17.25, indicating a potential upside of 6.48%. Given Nautilus’ stronger consensus rating and higher probable upside, analysts plainly believe Nautilus is more favorable than Sports Direct.

Institutional and Insider Ownership

87.2% of Nautilus shares are held by institutional investors. 3.7% of Nautilus shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Nautilus beats Sports Direct on 11 of the 13 factors compared between the two stocks.

Sports Direct Company Profile

Sports Direct International plc, together with its subsidiaries, retails sports and leisure clothing, footwear, equipment, and accessories. It operates through four segments: UK Sports Retail, International Sports Retail, Brands, and Premium Lifestyle. The company is also involved in the wholesale distribution and sale of sports and leisure clothing, footwear, and equipment under company-owned or licensed brands; and licensing activities. It offers its products under its own brands, which include Dunlop, Slazenger, Everlast, Lonsdale, Karrimor, Antigua, Campri, Carlton, Donnay, Gelert, LA Gear, Lillywhites, Muddyfox, Nevica, No Fear, Silver Fox, Sondico, Title, USA PRO, Crafted, Fabric, Firetrap, Full Circle, Golddigga, Hot Tuna, Kangol, Rock & Rags, SoulCal, Soviet, and Voodoo Dolls; and third party brands. The company offers a range of sporting apparel, footwear, and equipment through SPORTSDIRECT.com. In addition, it operates 32 fitness gyms. The company operates 468 sports retail stores in the United Kingdom and 289 internationally. Sports Direct International plc was founded in 1982 and is headquartered in Shirebrook, the United Kingdom.

Nautilus Company Profile

Nautilus, Inc., a consumer fitness products company, designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer use in the United States, Canada, and internationally. The company operates in two segments, Direct and Retail. It offers specialized cardio products, treadmills, elliptical machine, bike products, strength products, home gyms, dumbbells, kettlebell weights, and weight benches primarily under the Nautilus, Bowflex, Octane Fitness, Schwinn, and Universal brands. In addition, it engages in licensing its brands and intellectual properties. The company offers its products directly to consumers through television advertising, catalogs, and the Internet; and through a network of retail companies consisting of sporting goods stores, Internet retailers, and large-format and warehouse stores, as well as specialty retailers and independent bike dealers. Nautilus, Inc. was founded in 1986 and is headquartered in Vancouver, Washington.

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