Head to Head Comparison: Performance Sports Group (PSG) vs. Big 5 Sporting Goods (BGFV)

Performance Sports Group (NYSE: PSG) and Big 5 Sporting Goods (NASDAQ:BGFV) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitabiliy, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider Institutional Ownership

76.3% of Performance Sports Group shares are held by institutional investors. Comparatively, 87.3% of Big 5 Sporting Goods shares are held by institutional investors. 7.9% of Big 5 Sporting Goods shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Performance Sports Group and Big 5 Sporting Goods, as provided by MarketBeat.com.

Performance Sports Group presently has a consensus target price of $3.20, indicating a potential downside of 8.05%. Big 5 Sporting Goods has a consensus target price of $17.00, indicating a potential upside of 23.19%. Given Big 5 Sporting Goods’ stronger consensus rating and higher possible upside, analysts clearly believe Big 5 Sporting Goods is more favorable than Performance Sports Group.

Dividends

Big 5 Sporting Goods pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. Performance Sports Group does not pay a dividend. Big 5 Sporting Goods pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Performance Sports Group and Big 5 Sporting Goods’ net margins, return on equity and return on assets.

Risk and Volatility

Performance Sports Group has a beta of -0.18, meaning that its share price is 118% less volatile than the SP 500. Comparatively, Big 5 Sporting Goods has a beta of 0.42, meaning that its share price is 58% less volatile than the SP 500.

Earnings Valuation

This table compares Performance Sports Group and Big 5 Sporting Goods’ top-line revenue, earnings per share and valuation.

Big 5 Sporting Goods has higher revenue and earnings than Performance Sports Group. Performance Sports Group is trading at a lower price-to-earnings ratio than Big 5 Sporting Goods, indicating that it is currently the more affordable of the two stocks.

Summary

Big 5 Sporting Goods beats Performance Sports Group on 11 of the 12 factors compared between the two stocks.

About Performance Sports Group

Old PSG Wind-down Ltd, formerly Performance Sports Group Ltd, is a Canada-based company, which is engaged in the design, manufacture and distribution of performance sports equipment for ice hockey, roller hockey, baseball and softball, lacrosse, as well as related apparel and accessories, including soccer apparel. Its segments include Hockey, Baseball/Softball and Other Sports. The Hockey segment includes the Bauer and Mission brands. The Baseball/Softball segment includes the Easton and Combat brands. Its Other Sports includes the Lacrosse and Soccer operating segments, which includes the Maverik and Cascade brands for Lacrosse, and the Inaria brand for Soccer. The ice hockey products include skates, helmets, protective gear, sticks, team apparel and accessories. The roller hockey products include skates, helmets, protective gear, sticks and accessories. The baseball and softball products include bats, gloves, helmets, protective gear, apparel and accessories.

About Big 5 Sporting Goods

Big 5 Sporting Goods Corporation is a sporting goods retailer in the western United States. The Company offers a range of products in a sporting goods store format. The Company also offers products online through its e-commerce platform. The Company’s product mix includes athletic shoes, apparel and accessories, as well as a range of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports. The Company purchases merchandise from sporting goods equipment, athletic footwear and apparel manufacturers. It offers various brands, such as adidas, Coleman, Footjoy, JanSport, Rawlings, Spalding, Asics, Columbia, Franklin, Lifetime, Razor, Speedo, Bearpaw, Crocs, Gildan, Mizuno, Rollerblade and Timex. The Company operated 432 stores and an e-commerce platform under the name Big 5 Sporting Goods, as of January 1, 2017.

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