Best Buy Co., Inc. (BBY) vs DICK'S Sporting Goods, Inc. (DKS)

Best Buy Co., Inc. and DICK'S Sporting Goods, Inc. are both Specialty Retail companies. Best Buy Co., Inc. is the larger, with a market value of $18.8B against $12.0B — 1.6× the size. DICK'S Sporting Goods, Inc. trades at the lower P/E: 14.4× against 15.0×. DICK'S Sporting Goods, Inc. grew revenue faster over the last twelve months: 53.5% against 1.45%. DICK'S Sporting Goods, Inc. has the higher net margin (3.97% vs 3.01%) and the lower return on invested capital (10.9% vs 51.0%). Both pay a dividend; Best Buy Co., Inc. yields more (4.82% vs 2.53%). Across the 23 metrics below, Best Buy Co., Inc. leads on 12 and DICK'S Sporting Goods, Inc. on 11.

Valuation

Metric BBY DKS Specialty Retail median
P/E 14.96 14.39 17.14
P/S 0.45 0.57 0.48
P/B 6.01 2.12 1.71
Price to free cash flow 10.82 50.62 13.04
EV/EBITDA 6.73 7.65 8.92
EV/Sales 0.43 0.64 0.64
Earnings yield 6.68% 6.95% 3.85%
Free cash flow yield 9.24% 1.98% 3.02%

Profitability

Metric BBY DKS Specialty Retail median
Gross margin 22.68% 32.05% 37.89%
Operating margin 4.05% 5.53% 3.66%
Net margin 3.01% 3.97% 1.42%
Free cash flow margin 4.19% 1.13% 1.44%
Return on equity 43.13% 18.47% 2.58%
Return on assets 8.11% 5.80% 0.25%
Return on invested capital 50.97% 10.88% 0.00%

Growth

Metric BBY DKS Specialty Retail median
Revenue growth (TTM) 1.45% 53.54% 3.35%
EPS growth (last fiscal year) 17.76% (29.04%) —
Revenue growth, 5-year CAGR (2.48%) 12.43% 3.70%
Net income growth, 5-year CAGR (9.88%) 9.88% 0.00%

Health

Metric BBY DKS Specialty Retail median
Debt to equity 0.37 0.33 0.27
Current ratio 1.12 1.49 1.35
Net debt to EBITDA (0.23) 0.35 0.24

Dividend

Metric BBY DKS Specialty Retail median
Dividend yield 4.82% 2.53% 1.73%
Payout ratio 0.62 0.26 0.00

Size

Metric BBY DKS Specialty Retail median
Market cap 18.81b 11.98b 348.57m

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