Foot Locker (NYSE: FL) and Boot Barn (NYSE:BOOT) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Risk and Volatility
Foot Locker has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.
Insider and Institutional Ownership
95.2% of Foot Locker shares are owned by institutional investors. Comparatively, 93.4% of Boot Barn shares are owned by institutional investors. 2.9% of Foot Locker shares are owned by company insiders. Comparatively, 4.6% of Boot Barn shares are owned 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.
This is a summary of current recommendations for Foot Locker and Boot Barn, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Foot Locker presently has a consensus price target of $54.70, indicating a potential upside of 24.52%. Boot Barn has a consensus price target of $21.67, indicating a potential downside of 8.39%. Given Foot Locker’s higher possible upside, analysts clearly believe Foot Locker is more favorable than Boot Barn.
Foot Locker pays an annual dividend of $1.38 per share and has a dividend yield of 3.1%. Boot Barn does not pay a dividend. Foot Locker pays out 33.6% of its earnings in the form of a dividend. Foot Locker has raised its dividend for 7 consecutive years.
This table compares Foot Locker and Boot Barn’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Foot Locker and Boot Barn’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Foot Locker||$7.78 billion||0.68||$284.00 million||$4.11||10.69|
|Boot Barn||$677.95 million||0.95||$14.19 million||$0.70||33.79|
Foot Locker has higher revenue and earnings than Boot Barn. Foot Locker is trading at a lower price-to-earnings ratio than Boot Barn, indicating that it is currently the more affordable of the two stocks.
Foot Locker beats Boot Barn on 10 of the 17 factors compared between the two stocks.
Foot Locker Company Profile
Foot Locker, Inc., through its subsidiaries, operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep, and SIX:02. The Direct-to-Customers segment sells athletic footwear, apparel, equipment, and team licensed merchandise for high school and other athletes through Internet and mobile sites, and catalogs. This segment operates sites for eastbay.com, final-score.com, and eastbayteamsales.com, as well as footlocker.com, ladyfootlocker.com, six02.com, kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, footlocker.au, runnerspoint.com, and sidestep-shoes.com. As of February 3, 2018, the company operated 3,310 stores in 24 countries in North America, Europe, Australia, and New Zealand, as well as 98 franchised Foot Locker stores in the Middle East and 14 franchised Runners Point stores in Germany. Foot Locker, Inc. was founded in 1879 and is headquartered in New York, New York.
Boot Barn Company Profile
Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, ladies, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. As of January 31, 2018, it operated approximately 226 stores in 31 states. The company also sells its products through e-commerce Websites, including bootbarn.com, sheplers.com, and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.
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