LuxExperience B.V. (NYSE:LUXE) & Sportsman’s Warehouse (NASDAQ:SPWH) Financial Analysis

Sportsman’s Warehouse (NASDAQ:SPWH) and LuxExperience B.V. (NYSE:LUXE) 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 institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Risk & Volatility

Sportsman’s Warehouse has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, LuxExperience B.V. has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Sportsman’s Warehouse and LuxExperience B.V.’s 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%
LuxExperience B.V.	17.93%	35.63%	21.07%

Valuation and Earnings

This table compares Sportsman’s Warehouse and LuxExperience B.V.”s gross revenue, earnings per share 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)	-1.06
LuxExperience B.V.	$1.37 billion	0.48	$620.57 million	$4.09	1.88

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

Analyst Recommendations

This is a breakdown of current ratings for Sportsman’s Warehouse and LuxExperience B.V., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	2	1	0	2.00
LuxExperience B.V.	1	3	2	0	2.17

Sportsman’s Warehouse currently has a consensus target price of $2.12, indicating a potential upside of 63.46%. LuxExperience B.V. has a consensus target price of $9.75, indicating a potential upside of 26.79%. Given Sportsman’s Warehouse’s higher possible upside, equities research analysts clearly believe Sportsman’s Warehouse is more favorable than LuxExperience B.V..

Insider & Institutional Ownership

83.0% of Sportsman’s Warehouse shares are owned by institutional investors. Comparatively, 10.1% of LuxExperience B.V. shares are owned by institutional investors. 3.8% of Sportsman’s Warehouse shares are owned by company insiders. Comparatively, 1.9% of LuxExperience B.V. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

LuxExperience B.V. 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 LuxExperience B.V.

MYT Netherlands Parent B.V., through its subsidiary, Mytheresa Group GmbH, operates a luxury e-commerce platform for fashion consumers in Germany, the United States, the rest of Europe, and internationally. The company sells clothes, bags, shoes, accessories, and fine jewelry through online and retail stores. It serves high-income luxury consumers. The company was founded in 1987 and is based in Munich, Germany.