Analyzing Bath & Body Works (NYSE:BBWI) and Sportsman’s Warehouse (NASDAQ:SPWH)

Sportsman’s Warehouse (NASDAQ:SPWH) and Bath & Body Works (NYSE:BBWI) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Valuation and Earnings

This table compares Sportsman’s Warehouse and Bath & Body Works”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.23)	-1.00
Bath & Body Works	$7.29 billion	0.49	$649.00 million	$3.84	4.57

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

Profitability

This table compares Sportsman’s Warehouse and Bath & Body Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-3.94%	-10.50%	-2.29%
Bath & Body Works	10.83%	-53.48%	13.40%

Insider & Institutional Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 95.1% of Bath & Body Works shares are held by institutional investors. 3.8% of Sportsman’s Warehouse shares are held by insiders. Comparatively, 0.3% of Bath & Body Works shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Sportsman’s Warehouse has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Bath & Body Works has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Sportsman’s Warehouse and Bath & Body Works, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	2	1	0	2.00
Bath & Body Works	1	14	4	0	2.16

Sportsman’s Warehouse presently has a consensus target price of $2.12, indicating a potential upside of 73.47%. Bath & Body Works has a consensus target price of $22.13, indicating a potential upside of 26.05%. Given Sportsman’s Warehouse’s higher probable upside, equities research analysts plainly believe Sportsman’s Warehouse is more favorable than Bath & Body Works.

Summary

Bath & Body Works beats Sportsman’s Warehouse on 11 of the 14 factors compared between the two stocks.

About Sportsman’s Warehouse

Sportsman’s Warehouse Holdings, Inc. engages in the retail of sporting and athletic goods. Its products include hunting and shooting, archery, fishing, camping, boating accessories, optics and electronics, knives and tools, and footwear. The company was founded in 1986 and is headquartered in West Jordan, UT.

About Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.