Foot Locker (FL) versus Its Competitors Head-To-Head Comparison

Foot Locker (NYSE: FL) is one of 37 public companies in the “Apparel & Accessories Retailers” industry, but how does it compare to its rivals? We will compare Foot Locker to related businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.

Risk and Volatility

Foot Locker has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Foot Locker’s rivals have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Institutional and Insider Ownership

91.4% of Foot Locker shares are owned by institutional investors. Comparatively, 75.1% of shares of all “Apparel & Accessories Retailers” companies are owned by institutional investors. 2.9% of Foot Locker shares are owned by company insiders. Comparatively, 16.7% of shares of all “Apparel & Accessories Retailers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Foot Locker and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foot Locker 7.49% 21.52% 15.50%
Foot Locker Competitors 1.05% -2.17% 3.73%

Dividends

Foot Locker pays an annual dividend of $1.24 per share and has a dividend yield of 3.4%. Foot Locker pays out 28.6% of its earnings in the form of a dividend. As a group, “Apparel & Accessories Retailers” companies pay a dividend yield of 3.1% and pay out 55.5% of their earnings in the form of a dividend. Foot Locker has raised its dividend for 6 consecutive years. Foot Locker is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings for Foot Locker and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foot Locker 1 12 11 0 2.42
Foot Locker Competitors 607 3123 2928 91 2.37

Foot Locker presently has a consensus price target of $63.95, indicating a potential upside of 73.16%. As a group, “Apparel & Accessories Retailers” companies have a potential upside of 10.53%. Given Foot Locker’s stronger consensus rating and higher probable upside, analysts plainly believe Foot Locker is more favorable than its rivals.

Earnings & Valuation

This table compares Foot Locker and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Foot Locker $7.70 billion $1.06 billion 8.51
Foot Locker Competitors $3.36 billion $449.88 million 21.72

Foot Locker has higher revenue and earnings than its rivals. Foot Locker is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Foot Locker beats its rivals on 11 of the 15 factors compared.

About Foot Locker

Foot Locker, Inc. is a retailer of shoes and apparel. The Company operates through two segments: Athletic Stores and Direct-to-Customers. The Company is an athletic footwear and apparel retailer, which include businesses, such as include Foot Locker, Kids Foot Locker, Lady Foot Locker, Champs Sports, Footaction, Runners Point, Sidestep and SIX:02. The Direct-to-Customers segment is multi-branded and sells directly to customers through Internet and mobile sites and catalogs. The Direct-to-Customers segment operates the Websites for eastbay.com, final-score.com, eastbayteamsales.com and sp24.com. Additionally, this segment includes the Websites, both desktop and mobile, aligned with the brand names of its store banners (footlocker.com, ladyfootlocker.com, six02.com kidsfootlocker.com, champssports.com, footaction.com, footlocker.ca, footlocker.eu, runnerspoint.com and sidestep-shoes.com).

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