Shimano (OTCMKTS:SMNNY – Get Free Report) and Academy Sports and Outdoors (NASDAQ:ASO – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations for Shimano and Academy Sports and Outdoors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shimano | 0 | 0 | 0 | 0 | 0.00 |
| Academy Sports and Outdoors | 0 | 10 | 8 | 1 | 2.53 |
Academy Sports and Outdoors has a consensus price target of $58.94, indicating a potential upside of 24.74%. Given Academy Sports and Outdoors’ stronger consensus rating and higher possible upside, analysts plainly believe Academy Sports and Outdoors is more favorable than Shimano.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Shimano | 7.67% | 2.85% | 2.64% |
| Academy Sports and Outdoors | 6.24% | 17.85% | 7.08% |
Institutional & Insider Ownership
0.0% of Shimano shares are owned by institutional investors. 3.6% of Academy Sports and Outdoors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Shimano and Academy Sports and Outdoors”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shimano | $3.12 billion | 2.93 | $227.74 million | $0.26 | 40.65 |
| Academy Sports and Outdoors | $6.05 billion | 0.48 | $376.77 million | $5.68 | 8.32 |
Academy Sports and Outdoors has higher revenue and earnings than Shimano. Academy Sports and Outdoors is trading at a lower price-to-earnings ratio than Shimano, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Shimano has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Academy Sports and Outdoors has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Dividends
Shimano pays an annual dividend of $0.13 per share and has a dividend yield of 1.2%. Academy Sports and Outdoors pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Shimano pays out 50.0% of its earnings in the form of a dividend. Academy Sports and Outdoors pays out 10.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Academy Sports and Outdoors has increased its dividend for 3 consecutive years. Academy Sports and Outdoors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Academy Sports and Outdoors beats Shimano on 14 of the 18 factors compared between the two stocks.
About Shimano
Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.
About Academy Sports and Outdoors
Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.
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