BBY vs. WBA, DKS, EXPE, YUMC, GME, DRI, DPZ, ULTA, BURL, and CASY
Should you be buying Best Buy stock or one of its competitors? The main competitors of Best Buy include Walgreens Boots Alliance (WBA), DICK'S Sporting Goods (DKS), Expedia Group (EXPE), Yum China (YUMC), GameStop (GME), Darden Restaurants (DRI), Domino's Pizza (DPZ), Ulta Beauty (ULTA), Burlington Stores (BURL), and Casey's General Stores (CASY). These companies are all part of the "retail/wholesale" sector.
Walgreens Boots Alliance (NASDAQ:WBA) and Best Buy (NYSE:BBY) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, media sentiment, dividends, community ranking, risk, profitability, valuation and earnings.
Walgreens Boots Alliance pays an annual dividend of $1.00 per share and has a dividend yield of 5.5%. Best Buy pays an annual dividend of $3.76 per share and has a dividend yield of 5.1%. Walgreens Boots Alliance pays out -14.3% of its earnings in the form of a dividend. Best Buy pays out 66.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Best Buy has increased its dividend for 21 consecutive years. Walgreens Boots Alliance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Walgreens Boots Alliance has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
58.6% of Walgreens Boots Alliance shares are held by institutional investors. Comparatively, 81.0% of Best Buy shares are held by institutional investors. 17.4% of Walgreens Boots Alliance shares are held by company insiders. Comparatively, 0.6% of Best Buy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
In the previous week, Walgreens Boots Alliance had 20 more articles in the media than Best Buy. MarketBeat recorded 29 mentions for Walgreens Boots Alliance and 9 mentions for Best Buy. Walgreens Boots Alliance's average media sentiment score of 1.37 beat Best Buy's score of 0.64 indicating that Best Buy is being referred to more favorably in the news media.
Best Buy has a net margin of 2.86% compared to Best Buy's net margin of -4.18%. Walgreens Boots Alliance's return on equity of 48.45% beat Best Buy's return on equity.
Best Buy has lower revenue, but higher earnings than Walgreens Boots Alliance. Walgreens Boots Alliance is trading at a lower price-to-earnings ratio than Best Buy, indicating that it is currently the more affordable of the two stocks.
Best Buy received 411 more outperform votes than Walgreens Boots Alliance when rated by MarketBeat users. Likewise, 73.97% of users gave Best Buy an outperform vote while only 66.10% of users gave Walgreens Boots Alliance an outperform vote.
Walgreens Boots Alliance currently has a consensus price target of $24.36, suggesting a potential upside of 33.98%. Best Buy has a consensus price target of $84.00, suggesting a potential upside of 14.52%. Given Best Buy's higher possible upside, analysts clearly believe Walgreens Boots Alliance is more favorable than Best Buy.
Summary
Best Buy beats Walgreens Boots Alliance on 15 of the 21 factors compared between the two stocks.
This chart shows the number of new MarketBeat users adding BBY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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