Dick's Sporting GoodsGenuine Parts

Dick's Sporting Goods vs Genuine Parts

This page compares Dick's Sporting Goods Inc. and Genuine Parts Company, examining business models, financial performance, and market context in a neutral, accessible way. The content is presented to ...

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Navigating The Sportswear Shake-Up

Navigating The Sportswear Shake-Up

Puma's recent profit warning, driven by U.S. tariffs and weak demand, signals a broader disruption in the sportswear industry. This situation creates a potential opening for rival brands to gain market share and for off-price retailers to benefit from sector-wide inventory challenges.

Published: July 25, 2025

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Global Sportswear's Tariff Test

Global Sportswear's Tariff Test

Puma's recent profit warning, triggered by U.S. tariffs and declining sales, has sent shockwaves through the sportswear sector. This event highlights a critical investment theme focused on how global apparel companies are navigating geopolitical trade risks and shifting consumer markets.

Published: July 25, 2025

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Resilient Sportswear Plays Beyond The Tariff

Resilient Sportswear Plays Beyond The Tariff

Following Puma's significant profit warning due to U.S. tariffs, an investment opportunity emerges in the sportswear sector. This theme focuses on athletic apparel companies with resilient supply chains and less exposure to the trade policies impacting global brands.

Published: July 25, 2025

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Global Stadium

Global Stadium

Score big with companies that power the worldwide business of sports. These carefully selected stocks tap into the unwavering loyalty of global fanbases through team ownership, merchandise, media rights, and the booming sports betting industry.

Published: June 17, 2025

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Body & Fitness

Body & Fitness

Invest in the companies powering the global wellness movement. This collection features carefully selected market leaders in athletic apparel, fitness equipment, gym chains, and wellness technology, chosen by our investment professionals for their growth potential.

Published: June 17, 2025

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Sports

Sports

Looking for a slam dunk investment opportunity? This collection of carefully selected sports-related stocks spans athletic apparel, team ownership, and entertainment. Professionally chosen by our analysts to capture growth in the thriving global sports market.

Published: May 10, 2025

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Investment Analysis

Pros

  • Dick's Sporting Goods' 2025 guidance raised with comparable sales growth expected between 2% and 3.5%, and EPS guidance increased to $13.90-$14.50, reflecting strong operational momentum.
  • The acquisition of Foot Locker is set to close soon, expected to generate $100-$125 million in synergies and expand the company’s market presence and bargaining power with athletic brands.
  • Digital initiatives, store innovation, and strong growth in e-commerce and owned channels support long-term competitive positioning and revenue growth.

Considerations

  • Selling, general, and administrative expenses increased by nearly 10%, degrading expense leverage due to investments in digital infrastructure and marketing, which may pressure near-term margins.
  • Despite strong sales growth, Dick's Sporting Goods stock has underperformed the S&P 500 index with a lower price return, reflecting possible market skepticism or valuation challenges.
  • Price forecasts indicate a potential downside risk with some predictions suggesting a decline to around $182 per share by the end of 2025, reflecting current market uncertainty.

Pros

  • Genuine Parts Company maintains a solid return on equity of around 17.79%, demonstrating consistent profitability in its automotive and industrial parts distribution.
  • The company’s diversified operations serve a broad range of vehicle types, including hybrid and electric vehicles, supporting resilience amid industry evolution.
  • Genuine Parts Company’s established distribution network services a wide customer base including repair shops, dealerships, and industrial concerns, underpinning stable demand.

Considerations

  • Recent ROE is slightly below its 10-year historical average of 20.92%, indicating some pressure on profitability relative to longer-term performance.
  • The company is exposed to cyclical automotive and industrial markets, which can be vulnerable to economic downturns and fluctuations in vehicle production demand.
  • Growth and innovation drivers appear less pronounced compared to retail peers, possibly limiting upside potential as market shifts favor digital and direct-to-consumer trends.

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