Golfsmith International Holdings (NASDAQ: GOLF) and Big 5 Sporting Goods Corporation (NASDAQ:BGFV) are both small-cap services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Golfsmith International Holdings and Big 5 Sporting Goods Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golfsmith International Holdings 0 8 5 0 2.38
Big 5 Sporting Goods Corporation 0 2 0 0 2.00

Golfsmith International Holdings currently has a consensus price target of $20.36, suggesting a potential upside of 20.74%. Big 5 Sporting Goods Corporation has a consensus price target of $9.00, suggesting a potential upside of 13.21%. Given Golfsmith International Holdings’ stronger consensus rating and higher probable upside, research analysts clearly believe Golfsmith International Holdings is more favorable than Big 5 Sporting Goods Corporation.

Valuation and Earnings

This table compares Golfsmith International Holdings and Big 5 Sporting Goods Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Golfsmith International Holdings $1.53 billion 0.82 $174.85 million N/A N/A
Big 5 Sporting Goods Corporation $1.04 billion 0.17 $58.02 million $1.10 7.23

Golfsmith International Holdings has higher revenue and earnings than Big 5 Sporting Goods Corporation.

Profitability

This table compares Golfsmith International Holdings and Big 5 Sporting Goods Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Golfsmith International Holdings N/A N/A N/A
Big 5 Sporting Goods Corporation 2.30% 11.86% 5.54%

Dividends

Big 5 Sporting Goods Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 7.5%. Golfsmith International Holdings does not pay a dividend. Big 5 Sporting Goods Corporation pays out 54.5% of its earnings in the form of a dividend.

Summary

Golfsmith International Holdings beats Big 5 Sporting Goods Corporation on 8 of the 12 factors compared between the two stocks.

Golfsmith International Holdings Company Profile

Golfsmith International Holdings, Inc, the parent company of Golfsmith International, Inc, is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs.

Big 5 Sporting Goods Corporation Company Profile

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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