Contrasting Big Lots (BIG) and The Competition

Big Lots (NYSE: BIG) is one of 12 publicly-traded companies in the “Variety stores” industry, but how does it weigh in compared to its competitors? We will compare Big Lots to related businesses based on the strength of its dividends, valuation, profitability, risk, institutional ownership, analyst recommendations and earnings.

Earnings & Valuation

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This table compares Big Lots and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Big Lots $5.27 billion $189.83 million 9.54
Big Lots Competitors $65.63 billion $1.74 billion 22.06

Big Lots’ competitors have higher revenue and earnings than Big Lots. Big Lots is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

76.5% of shares of all “Variety stores” companies are owned by institutional investors. 1.7% of Big Lots shares are owned by company insiders. Comparatively, 13.9% of shares of all “Variety stores” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Big Lots and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Big Lots 0 6 7 0 2.54
Big Lots Competitors 163 1266 1707 91 2.53

Big Lots presently has a consensus target price of $57.27, suggesting a potential upside of 34.89%. As a group, “Variety stores” companies have a potential upside of 0.89%. Given Big Lots’ stronger consensus rating and higher possible upside, analysts plainly believe Big Lots is more favorable than its competitors.

Profitability

This table compares Big Lots and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Big Lots 3.60% 31.12% 11.51%
Big Lots Competitors 3.76% 15.00% 6.64%

Volatility and Risk

Big Lots has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Big Lots’ competitors have a beta of 0.89, meaning that their average share price is 11% less volatile than the S&P 500.

Dividends

Big Lots pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. Big Lots pays out 27.0% of its earnings in the form of a dividend. As a group, “Variety stores” companies pay a dividend yield of 1.6% and pay out 36.6% of their earnings in the form of a dividend. Big Lots has increased its dividend for 3 consecutive years. Big Lots is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Big Lots beats its competitors on 8 of the 15 factors compared.

About Big Lots

Big Lots, Inc., through its subsidiaries, operates as a non-traditional, discount retailer in the United States. The company offers products under various merchandising categories, such as food category that includes beverage and grocery, candy and snacks, and specialty foods departments; consumables category, which comprises health and beauty, plastics, paper, chemical, and pet departments; soft home category that consists of home décor, frames, fashion bedding, utility bedding, bath, window, decorative textile, and area rugs departments; hard home category, including small appliances, table top, food preparation, stationery, greeting cards, and home maintenance departments; and furniture category consisting of upholstery, mattress, ready-to-assemble, and case goods departments. It also provides merchandise under the seasonal category that includes lawn and garden, summer, Christmas, and other holiday departments; and electronics, toys, and accessories category, including electronics, jewelry, hosiery, toys, and infant accessories departments. As of November 7, 2017, it operated 1,428 stores in 47 states. Big Lots, Inc. was founded in 1967 and is headquartered in Columbus, Ohio.

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