Financial Survey: Newegg Commerce (NASDAQ:NEGG) & Sportsman’s Warehouse (NASDAQ:SPWH)

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

Insider and Institutional Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 0.5% of Newegg Commerce shares are held by institutional investors. 3.8% of Sportsman’s Warehouse shares are held by insiders. Comparatively, 22.9% of Newegg Commerce shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%
Newegg Commerce	N/A	N/A	N/A

Valuation & Earnings

This table compares Sportsman’s Warehouse and Newegg Commerce”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	($1.30)	-0.92
Newegg Commerce	$1.44 million	493.99	-$4.88 million	N/A	N/A

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

Analyst Recommendations

This is a summary of recent recommendations for Sportsman’s Warehouse and Newegg Commerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	2	2	0	2.20
Newegg Commerce	1	0	0	0	1.00

Sportsman’s Warehouse presently has a consensus price target of $2.58, indicating a potential upside of 117.09%. Given Sportsman’s Warehouse’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sportsman’s Warehouse is more favorable than Newegg Commerce.

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, Newegg Commerce has a beta of 3.44, indicating that its share price is 244% more volatile than the S&P 500.

Summary

Newegg Commerce beats Sportsman’s Warehouse on 7 of the 12 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 Newegg Commerce

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video and audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; display and printing, office technology furniture, office supplies, and mailing and inventory supplies; and software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products. It also provides Xbox, PlayStation, home networking, server and components, smart home products, car electronics, motorcycles and ATV, wheels and tires, home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, fitness, and sports and health products. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.