Head to Head Survey: Sportsman’s Warehouse (NASDAQ:SPWH) & Arhaus (NASDAQ:ARHS)

Arhaus (NASDAQ:ARHS) and Sportsman’s Warehouse (NASDAQ:SPWH) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility & Risk

Arhaus has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arhaus	$1.38 billion	0.83	$67.26 million	$0.50	16.24
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.23)	-0.94

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Arhaus and Sportsman’s Warehouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arhaus	0	7	4	0	2.36
Sportsman’s Warehouse	1	2	1	0	2.00

Arhaus currently has a consensus price target of $10.12, indicating a potential upside of 24.69%. Sportsman’s Warehouse has a consensus price target of $2.12, indicating a potential upside of 83.19%. Given Sportsman’s Warehouse’s higher possible upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Arhaus.

Institutional and Insider Ownership

27.9% of Arhaus shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 1.2% of Arhaus shares are owned by insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arhaus	4.91%	17.23%	4.94%
Sportsman’s Warehouse	-3.94%	-10.50%	-2.29%

Summary

Arhaus beats Sportsman’s Warehouse on 11 of the 14 factors compared between the two stocks.

About Arhaus

Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.

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.