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How Does Cabela’s Compare to Its Peers after 2Q16 Earnings?

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Aug. 1 2016, Published 8:22 a.m. ET

Cabela’s and its peers

So far in this series, we’ve looked at Cabela’s (CAB) 2Q16 results. In this article, we’ll compare CAB with its peers, as of July 28, 2016. First, let’s compare CAB and its peers based on PE (price-to-earnings) ratios:

  • Cabela’s (CAB): 19.4x
  • DICK’s Sporting Goods (DKS): 18.1x
  • Best Buy Co. (BBY): 11.4x
  • Lowe’s Companies (LOW): 27.5x

Now let’s look at PBV (price-to-book value) ratios:

  • Cabela’s (CAB): 1.9x
  • DICK’s Sporting Goods (DKS): 3.2x
  • Best Buy (BBY): 2.4x
  • Lowe’s (LOW): 10.2x

Finally, let’s look at price-to-sales ratios:

  • Cabela’s (CAB): 0.87x
  • DICK’s Sporting Goods (DKS): 0.78x
  • Best Buy (BBY): 0.27x
  • Lowe’s (LOW): 1.2x

According to the above findings, CAB’s peers have outperformed it based on PBV ratio. However, Cabela’s has mostly outperformed its peers based on PE and price-to-sales ratios.

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ETFs that invest in Cabela’s

The SPDR S&P Retail ETF (XRT) invests 1.2% of its holdings in Cabela’s. The ETF tracks a broad-based, equal-weighted index of stocks in the US retail industry.

The First Trust Mid Cap Core AlphaDEX Fund (FNX) invests 0.23% of its holdings in Cabela’s. The ETF seeks to outperform the US mid-cap sector by choosing stocks from the S&P Mid Cap 400 Index based on fundamental growth and value factors.

The SPDR S&P 400 Mid Cap Value ETF (MDYV) invests 0.33% of its holdings in Cabela’s. The ETF tracks a market cap–weighted index of US stocks. The index uses three factors to select value stocks from the 400 stocks chosen by the S&P Committee.

Comparing Cabela’s and its ETFs

Now let’s compare CAB with the ETFs that invest in it:

  • The year-to-date price movements of CAB, XRT, FNX, and MDYV are 10.2%, 4.2%, 9.7%, and 13.3%, respectively.
  • The PBV ratios of CAB, XRT, FNX, and MDYV are 1.9x, 3.1x, 2.0x, and 1.7x, respectively.

According to the above findings, most of these ETFs are ahead of Cabela’s based on PBV ratio. However, Cabela’s has mostly outperformed these ETFs based on price movement.

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