Sportsman’s Warehouse (NASDAQ:SPWH) versus Buckle (NYSE:BKE) Head-To-Head Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Buckle	16.85%	47.35%	21.36%
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Buckle	$1.31 billion	1.66	$209.74 million	$4.36	9.73
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.86

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Buckle and Sportsman’s Warehouse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Buckle	0	2	0	0	2.00
Sportsman’s Warehouse	1	1	2	1	2.60

Buckle currently has a consensus price target of $47.00, suggesting a potential upside of 10.75%. Sportsman’s Warehouse has a consensus price target of $2.58, suggesting a potential upside of 130.65%. Given Sportsman’s Warehouse’s stronger consensus rating and higher probable upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Buckle.

Institutional and Insider Ownership

53.9% of Buckle shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 38.4% of Buckle shares are owned by insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Buckle has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Summary

Buckle beats Sportsman’s Warehouse on 10 of the 15 factors compared between the two stocks.

About Buckle

The Buckle, Inc. operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. It markets a selection of brand name casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear, as well as private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, Daytrip, Gimmicks, Gilded Intent, FITZ + EDDI, Willow & Root, Outpost Makers, Departwest, Sterling & Stitch, Reclaim, BKE Vintage, Nova Industries, J.B. Holt, Modish Rebel, Maven Co-op, and Veece. The company provides services, such as hemming, gift-packaging, layaways, guest loyalty program, the Buckle private label credit card, and personalized stylist services, as well as special order system that allows stores to obtain requested merchandise from other company stores or its online order fulfillment center. The Buckle, Inc. also sells its products through its website, buckle.com. The company was formerly known as Mills Clothing, Inc. and changed its name to The Buckle, Inc. in April 1991.The Buckle, Inc. was incorporated in 1948 and is headquartered in Kearney, Nebraska.

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.