JOANN (NASDAQ:JOANQ) and Sportsman’s Warehouse (NASDAQ:SPWH) Critical Comparison

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

Institutional & Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportsman’s Warehouse	$1.29 billion	0.09	-$29.00 million	($0.78)	-3.96
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.02

Sportsman’s Warehouse has higher earnings, but lower revenue 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Sportsman’s Warehouse and JOANN, as provided by MarketBeat.com.

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

Sportsman’s Warehouse presently has a consensus target price of $4.00, indicating a potential upside of 29.45%. Given Sportsman’s Warehouse’s higher probable upside, equities analysts clearly believe Sportsman’s Warehouse is more favorable than JOANN.

Volatility and Risk

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

Profitability

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

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

Summary

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

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.

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.