DICK’S Sporting Goods (NYSE:DKS) vs. Calloway’s Nursery (OTCMKTS:CLWY) Critical Analysis

DICK’S Sporting Goods (NYSE:DKS) and Calloway’s Nursery (OTCMKTS:CLWY) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for DICK’S Sporting Goods and Calloway’s Nursery, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DICK’S Sporting Goods	1	8	10	1	2.55
Calloway’s Nursery	0	0	0	0	0.00

DICK’S Sporting Goods currently has a consensus target price of $236.21, suggesting a potential upside of 24.25%. Given DICK’S Sporting Goods’ stronger consensus rating and higher probable upside, equities research analysts plainly believe DICK’S Sporting Goods is more favorable than Calloway’s Nursery.

Earnings and Valuation

This table compares DICK’S Sporting Goods and Calloway’s Nursery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DICK’S Sporting Goods	$17.22 billion	0.99	$849.24 million	$10.22	18.60
Calloway’s Nursery	N/A	N/A	N/A	$0.21	9.76

DICK’S Sporting Goods has higher revenue and earnings than Calloway’s Nursery. Calloway’s Nursery 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	4.93%	27.12%	8.46%
Calloway’s Nursery	N/A	N/A	N/A

Risk and Volatility

DICK’S Sporting Goods has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Calloway’s Nursery has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500.

Institutional and Insider Ownership

89.8% of DICK’S Sporting Goods shares are owned by institutional investors. 32.6% of DICK’S Sporting Goods shares are owned by company insiders. Comparatively, 36.4% of Calloway’s Nursery shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

About DICK’S Sporting Goods

DICK’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.

About Calloway’s Nursery

Calloway's Nursery, Inc. operates garden centers in the United States. The company offers birding, fertilizers, garden tools,insect and pest control; mosquito control solutions, pottery, soils and mulches; weed control and fungicide to gardeners. It also provides cornelius home decor and lawn décor products. In addition, the company provides landscape design services. The company operates 24 stores under the Calloway's Nursery name in Texas. Calloway's Nursery, Inc. was founded in 1986 and is based in Fort Worth, Texas.