Head-To-Head Contrast: DICK’S Sporting Goods (NYSE:DKS) & Petco Health and Wellness (NASDAQ:WOOF)

Petco Health and Wellness (NASDAQ:WOOF) and DICK’S Sporting Goods (NYSE:DKS) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Petco Health and Wellness and DICK’S Sporting Goods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Petco Health and Wellness	0.51%	3.44%	0.78%
DICK’S Sporting Goods	3.97%	19.21%	6.07%

Risk and Volatility

Petco Health and Wellness has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, DICK’S Sporting Goods has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Petco Health and Wellness and DICK’S Sporting Goods, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Petco Health and Wellness	1	7	1	0	2.00
DICK’S Sporting Goods	2	11	12	0	2.40

Petco Health and Wellness presently has a consensus target price of $3.42, suggesting a potential upside of 18.75%. DICK’S Sporting Goods has a consensus target price of $166.55, suggesting a potential upside of 11.39%. Given Petco Health and Wellness’ higher probable upside, equities research analysts clearly believe Petco Health and Wellness is more favorable than DICK’S Sporting Goods.

Insider & Institutional Ownership

89.8% of DICK’S Sporting Goods shares are held by institutional investors. 6.5% of Petco Health and Wellness shares are held by company insiders. Comparatively, 28.9% of DICK’S Sporting Goods shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Petco Health and Wellness and DICK’S Sporting Goods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Petco Health and Wellness	$5.96 billion	0.16	$9.07 million	$0.10	28.80
DICK’S Sporting Goods	$17.22 billion	0.77	$849.24 million	$9.31	16.06

DICK’S Sporting Goods has higher revenue and earnings than Petco Health and Wellness. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than Petco Health and Wellness, indicating that it is currently the more affordable of the two stocks.

Summary

DICK’S Sporting Goods beats Petco Health and Wellness on 11 of the 14 factors compared between the two stocks.

About Petco Health and Wellness

Petco Health and Wellness Company is a pet specialty retailer that sells food, treats, supplies and other products for dogs, cats, fish, birds and small animals. Its assortment includes third-party brands as well as private-label products, available through its stores and e-commerce channels. In addition to retail, Petco offers services such as grooming, dog training and veterinary care at locations where those services are available. The company also provides pet adoption opportunities through partnerships with animal welfare organizations.

About DICK’S Sporting Goods

DICK’S Sporting Goods, Inc. is a U.S. sporting goods retailer that sells equipment, apparel, footwear and accessories for a range of sports and outdoor activities. Customers can shop through its stores and e-commerce platforms, and the company also offers services such as golf club fitting and equipment repair at select locations. The company operates under several retail banners, including DICK’S Sporting Goods, Golf Galaxy, Public Lands and Going Going Gone!, as well as experiential DICK’S House of Sport locations.