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How Did Foot Locker Perform Compared to Its Peers?

Gabriel Kane

Foot Locker's Revenue Rose and Income Fell in Fiscal 3Q15

(Continued from Prior Part)

Foot Locker and its peers

In this part, we’ll compare Foot Locker to its peers.

  • The PE (price-to-earnings) ratios of Foot Locker (FL), Walmart (WMT), DSW (DSW), Genesco (GCO), and Caleres (CAL) are 16.4x, 12.9x, 12.3x, 13.1x, and 14.8x, respectively, as of November 20, 2015.

  • The PBV (price-to-book value) ratios of Foot Locker, Walmart, DSW, Genesco, and Caleres are 3.5x, 2.4x, 1.9x, 1.3x, and 2.1x, respectively.
  • The price-to-sales ratios of Foot Locker, Walmart, DSW, Genesco, and Caleres are 1.2x, 0.40x, 0.78x, 0.44x, and 0.49x, respectively.

As a result, Foot Locker outperformed its peers based on the PE ratio, PBV ratio, and price-to-sales ratio.

ETFs that invest in Foot Locker  

The PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) invests 2.6% of its holdings in Foot Locker. PEZ tracks an index of US consumer cyclical firms selected and weighted by price momentum.

The PowerShares Dynamic Retail ETF (PMR) invests 2.3% of its holdings in Foot Locker. PMR tracks a multifactor, tiered, and equal-weighted index of US retail stocks.

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 1.3% of its holdings in Foot Locker. IVOG tracks a market-cap-weighted index of growth companies culled from the S&P 400.

Comparing Foot Locker and its ETFs

Now, we’ll compare Foot Locker with the ETFs that invest in it:

  • The YTD (year-to-date) price movements of Foot Locker, PEZ, PMR, and IVOG are 17.5%, 1.1%, -3.8%, and 3.7%, respectively.
  • The PE ratios of Foot Locker, PEZ, PMR, and IVOG are 16.4x, 22.3x, 18.3x, and 25.6x, respectively.
  • The PBV ratios of Foot Locker, PEZ, PMR, and IVOG are 3.5x, 7.5x, 4.1x, and 3.6x, respectively.

According to the above findings, the ETFs outperformed Foot Locker based on the PE and PBV ratios. However, Foot Locker is way ahead of its ETFs based on the price movement.

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