Tilly’s (NYSE:TLYS) and DICK’S Sporting Goods (NYSE:DKS) Financial Survey

Tilly’s (NYSE:TLYS) and DICK’S Sporting Goods (NYSE:DKS) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Volatility and Risk

Tilly’s has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, DICK’S Sporting Goods has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Tilly’s and DICK’S Sporting Goods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilly’s	0	2	0	1	2.67
DICK’S Sporting Goods	3	9	11	0	2.35

Tilly’s presently has a consensus target price of $5.50, suggesting a potential upside of 36.48%. DICK’S Sporting Goods has a consensus target price of $167.20, suggesting a potential upside of 35.44%. Given Tilly’s’ stronger consensus rating and higher possible upside, analysts plainly believe Tilly’s is more favorable than DICK’S Sporting Goods.

Earnings and Valuation

This table compares Tilly’s and DICK’S Sporting Goods”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$553.59 million	0.22	-$17.45 million	$0.06	67.17
DICK’S Sporting Goods	$17.22 billion	0.64	$849.24 million	$9.31	13.26

DICK’S Sporting Goods has higher revenue and earnings than Tilly’s. DICK’S Sporting Goods is trading at a lower price-to-earnings ratio than Tilly’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tilly’s and DICK’S Sporting Goods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilly’s	0.34%	2.37%	0.61%
DICK’S Sporting Goods	3.97%	19.21%	6.07%

Insider & Institutional Ownership

76.4% of Tilly’s shares are held by institutional investors. Comparatively, 89.8% of DICK’S Sporting Goods shares are held by institutional investors. 26.4% of Tilly’s shares are held by company insiders. Comparatively, 28.9% of DICK’S Sporting Goods shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

DICK’S Sporting Goods beats Tilly’s on 11 of the 15 factors compared between the two stocks.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.

About DICK’S Sporting Goods

DICK’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.