Head to Head Review: Sportsman’s Warehouse (NASDAQ:SPWH) and JOANN (NASDAQ:JOANQ)

JOANN (NASDAQ:JOANQ) and Sportsman’s Warehouse (NASDAQ:SPWH) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Profitability

This table compares JOANN and Sportsman’s Warehouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOANN	-11.10%	N/A	-4.99%
Sportsman’s Warehouse	-2.25%	-8.86%	-2.50%

Valuation and Earnings

This table compares JOANN and Sportsman’s Warehouse’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.02
Sportsman’s Warehouse	$1.29 billion	0.09	-$29.00 million	($0.78)	-4.10

Sportsman’s Warehouse has lower revenue, but higher earnings than JOANN. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than JOANN, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

JOANN has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Institutional & Insider Ownership

72.1% of JOANN shares are held by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are held by institutional investors. 73.4% of JOANN shares are held by company insiders. Comparatively, 1.9% of Sportsman’s Warehouse shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for JOANN and Sportsman’s Warehouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOANN	0	0	0	0	N/A
Sportsman’s Warehouse	0	2	0	0	2.00

Sportsman’s Warehouse has a consensus price target of $4.00, suggesting a potential upside of 25.00%. Given Sportsman’s Warehouse’s higher probable upside, analysts plainly believe Sportsman’s Warehouse is more favorable than JOANN.

Summary

Sportsman’s Warehouse beats JOANN on 7 of the 11 factors compared between the two stocks.

About JOANN

JOANN Inc. involved in the sewing and fabrics industry. It serves as a convenient single source for all of the supplies, guidance and inspiration needed to achieve any project or passion. JOANN Inc. is based in HUDSON, Ohio.

About Sportsman’s Warehouse

Sportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States. It offers camping products, such as backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents, and tools; and apparel products, including camouflage, jackets, hats, outerwear, sportswear, technical gear, and work wear. The company also provides fishing products comprising bait, electronics, fishing rods, flotation items, fly fishing products, lines, lures, reels, tackles, and small boats; and foot wear products consist of hiking and work boots, socks, sport sandals, technical footwear, trial and casual shoes, and waders. In addition, it offers hunting and shooting products, such as ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, firearms safety and storage products, reloading equipment, and shooting gear products; and optics, electronics, accessories, and other products comprising gift items, GPS devices, knives, lighting, optics, and two-way radios. Further, the company's stores provide archery technician services, fishing-reel line winding, scope mounting and bore sighting, and cleaning services, as well as issues hunting and fishing licenses. Additionally, it offers various private label and special make-up offerings under the Rustic Ridge, Killik, Vital Impact, Yukon Gold, Lost Creek, and Sportsman's Warehouse brands. Sportsman's Warehouse Holdings, Inc. was founded in 1986 and is headquartered in West Jordan, Utah.