Boot Barn (NYSE: BOOT) and Foot Locker (NYSE:FL) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
This table compares Boot Barn and Foot Locker’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
96.1% of Foot Locker shares are held by institutional investors. 4.6% of Boot Barn shares are held by insiders. Comparatively, 2.9% of Foot Locker shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Foot Locker pays an annual dividend of $1.38 per share and has a dividend yield of 3.3%. 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 increased its dividend for 7 consecutive years.
Risk and Volatility
Boot Barn has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Foot Locker has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
Valuation & Earnings
This table compares Boot Barn and Foot Locker’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Boot Barn||$629.82 million||0.84||$14.19 million||$0.55||35.58|
|Foot Locker||$7.78 billion||0.65||$284.00 million||$4.11||10.20|
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.
This is a summary of current ratings and recommmendations for Boot Barn and Foot Locker, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Boot Barn presently has a consensus price target of $17.88, suggesting a potential downside of 8.66%. Foot Locker has a consensus price target of $54.70, suggesting a potential upside of 30.43%. Given Foot Locker’s higher possible upside, analysts plainly believe Foot Locker is more favorable than Boot Barn.
Foot Locker beats Boot Barn on 10 of the 17 factors compared between the two stocks.
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.
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.
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