Sportsman’s Warehouse Holdings (NASDAQ: SPWH) and Golfsmith International Holdings (NASDAQ:GOLF) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

95.0% of Sportsman’s Warehouse Holdings shares are owned by institutional investors. 4.2% of Sportsman’s Warehouse Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sportsman’s Warehouse Holdings and Golfsmith International Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sportsman’s Warehouse Holdings 0 4 4 0 2.50
Golfsmith International Holdings 0 8 5 0 2.38

Sportsman’s Warehouse Holdings presently has a consensus target price of $6.81, suggesting a potential upside of 72.03%. Golfsmith International Holdings has a consensus target price of $20.00, suggesting a potential upside of Infinity. Given Golfsmith International Holdings’ higher possible upside, analysts clearly believe Golfsmith International Holdings is more favorable than Sportsman’s Warehouse Holdings.

Valuation & Earnings

This table compares Sportsman’s Warehouse Holdings and Golfsmith International Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sportsman’s Warehouse Holdings $779.96 million 0.22 $29.66 million $0.54 7.33
Golfsmith International Holdings N/A N/A N/A ($0.06) N/A

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

Profitability

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

Net Margins Return on Equity Return on Assets
Sportsman’s Warehouse Holdings 2.94% 90.52% 6.13%
Golfsmith International Holdings N/A N/A N/A

Summary

Sportsman’s Warehouse Holdings beats Golfsmith International Holdings on 8 of the 10 factors compared between the two stocks.

Sportsman’s Warehouse Holdings Company Profile

Sportsman’s Warehouse Holdings, Inc. is an outdoor sporting goods retailer. The Company has outdoor specialty store base in the Western United States and Alaska. The Company has over 70 stores across approximately 20 states, which are located in power, neighborhood and lifestyle centers. The Company also operates several single-unit, standalone locations. Its stores average approximately 44,000 gross square feet. Its stores include locally relevant features, such as a fishing board at the entrance that displays fishing conditions in local lakes and rivers with coordinating gear in end-cap displays in the fishing aisles. The Company engages its customers through in-store features, such as the Braggin Board, various contests (such as Bucks & Bulls and Fish Alaska), and customer-owned taxidermy displays on the walls. It also hosts in-store programs, such as ladies night and a range of instructional seminars, from Dutch oven cooking to choosing the right binocular.

Golfsmith International Holdings Company Profile

Golfsmith International Holdings, Inc, the parent company of Golfsmith International, Inc, is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs.

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