Big 5 Sporting Goods vs Foot Locker

Big 5 Sporting Goods and Foot Locker are two prominent retailers in the athletic apparel and footwear industry, both catering to sports enthusiasts and athletes. While Big 5 Sporting Goods primarily focuses on a wide range of sporting goods, camping equipment, and active wear, Foot Locker specializes in athletic footwear and apparel. Both companies have experienced fluctuations in their stock prices in recent years, with investors closely monitoring their financial performance and strategic initiatives to determine the potential for long-term growth and profitability.

Big 5 Sporting Goods or Foot Locker?

When comparing Big 5 Sporting Goods and Foot Locker, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Big 5 Sporting Goods and Foot Locker.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Big 5 Sporting Goods has a dividend yield of 10.92%, while Foot Locker has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Big 5 Sporting Goods reports a 5-year dividend growth of 11.84% year and a payout ratio of -43.43%. On the other hand, Foot Locker reports a 5-year dividend growth of 3.53% year and a payout ratio of -10.41%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Big 5 Sporting Goods P/E ratio at -1.79 and Foot Locker's P/E ratio at -6.40. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Big 5 Sporting Goods P/B ratio is 0.20 while Foot Locker's P/B ratio is 0.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Big 5 Sporting Goods has seen a 5-year revenue growth of -0.14%, while Foot Locker's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Big 5 Sporting Goods's ROE at -10.53% and Foot Locker's ROE at -12.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.02 for Big 5 Sporting Goods and $24.02 for Foot Locker. Over the past year, Big 5 Sporting Goods's prices ranged from $1.45 to $8.04, with a yearly change of 454.48%. Foot Locker's prices fluctuated between $19.44 and $35.60, with a yearly change of 83.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.