Analyzing Sportsman’s Warehouse (NASDAQ:SPWH) and Boot Barn (NYSE:BOOT)

Boot Barn (NYSE:BOOT) and Sportsman’s Warehouse (NASDAQ:SPWH) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boot Barn	10.02%	18.15%	9.82%
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Valuation & Earnings

This table compares Boot Barn and Sportsman’s Warehouse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boot Barn	$2.25 billion	2.01	$225.88 million	$7.35	20.33
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.88

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

Insider & Institutional Ownership

83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 0.7% of Boot Barn shares are owned by company insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Boot Barn and Sportsman’s Warehouse, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boot Barn	0	2	12	0	2.86
Sportsman’s Warehouse	1	1	2	1	2.60

Boot Barn presently has a consensus target price of $226.92, suggesting a potential upside of 51.88%. Sportsman’s Warehouse has a consensus target price of $2.58, suggesting a potential upside of 124.64%. Given Sportsman’s Warehouse’s higher possible upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Boot Barn.

Volatility & Risk

Boot Barn has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Summary

Boot Barn beats Sportsman’s Warehouse on 11 of the 15 factors compared between the two stocks.

About Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.

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.