DICK’S Sporting Goods (NYSE:DKS – Get Free Report) and Zalando (OTCMKTS:ZLNDY – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
89.8% of DICK’S Sporting Goods shares are owned by institutional investors. 28.9% of DICK’S Sporting Goods shares are owned 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.
Profitability
This table compares DICK’S Sporting Goods and Zalando’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DICK’S Sporting Goods | 3.97% | 19.21% | 6.07% |
| Zalando | 0.70% | 3.46% | 1.06% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DICK’S Sporting Goods | $21.15 billion | 0.57 | $849.24 million | $9.31 | 14.53 |
| Zalando | $13.97 billion | 0.45 | $243.36 million | $0.22 | 58.55 |
DICK’S Sporting Goods has higher revenue and earnings than Zalando. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for DICK’S Sporting Goods and Zalando, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DICK’S Sporting Goods | 3 | 8 | 12 | 0 | 2.39 |
| Zalando | 0 | 1 | 1 | 2 | 3.25 |
DICK’S Sporting Goods currently has a consensus target price of $167.20, suggesting a potential upside of 23.64%. Given DICK’S Sporting Goods’ higher possible upside, research analysts clearly believe DICK’S Sporting Goods is more favorable than Zalando.
Volatility and Risk
DICK’S Sporting Goods has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.
Summary
DICK’S Sporting Goods beats Zalando on 11 of the 15 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 Zalando
Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
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