Sportsman’s Warehouse Holdings (NASDAQ: SPWH) and Hibbett Sports (NASDAQ:HIBB) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitabiliy, earnings, valuation and risk.
Profitability
This table compares Sportsman’s Warehouse Holdings and Hibbett Sports’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sportsman’s Warehouse Holdings | 3.16% | 127.68% | 6.82% |
| Hibbett Sports | 5.59% | 16.39% | 11.67% |
Analyst Recommendations
This is a summary of current ratings for Sportsman’s Warehouse Holdings and Hibbett Sports, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sportsman’s Warehouse Holdings | 0 | 3 | 3 | 0 | 2.50 |
| Hibbett Sports | 3 | 13 | 2 | 0 | 1.94 |
Sportsman’s Warehouse Holdings presently has a consensus target price of $6.92, suggesting a potential upside of 54.74%. Hibbett Sports has a consensus target price of $26.56, suggesting a potential upside of 74.18%. Given Hibbett Sports’ higher possible upside, analysts clearly believe Hibbett Sports is more favorable than Sportsman’s Warehouse Holdings.
Valuation and Earnings
This table compares Sportsman’s Warehouse Holdings and Hibbett Sports’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Sportsman’s Warehouse Holdings | $785.24 million | 0.24 | $69.35 million | $0.59 | 7.58 |
| Hibbett Sports | $966.56 million | 0.33 | $106.75 million | $2.46 | 6.20 |
Hibbett Sports has higher revenue and earnings than Sportsman’s Warehouse Holdings. Hibbett Sports is trading at a lower price-to-earnings ratio than Sportsman’s Warehouse Holdings, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Sportsman’s Warehouse Holdings has a beta of -0.79, suggesting that its share price is 179% less volatile than the S&P 500. Comparatively, Hibbett Sports has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Institutional & Insider Ownership
79.7% of Sportsman’s Warehouse Holdings shares are held by institutional investors. 3.6% of Sportsman’s Warehouse Holdings shares are held by company insiders. Comparatively, 1.6% of Hibbett Sports shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Hibbett Sports beats Sportsman’s Warehouse Holdings on 8 of the 14 factors compared between the two stocks.
Sportsman’s Warehouse Holdings Company Profile
Sportsman’s Warehouse Holdings, Inc. is an outdoor sporting goods retailer. The Company has outdoor specialty store base in the Western United States and Alaska. The Company has over 70 stores across approximately 20 states, which are located in power, neighborhood and lifestyle centers. The Company also operates several single-unit, standalone locations. Its stores average approximately 44,000 gross square feet. Its stores include locally relevant features, such as a fishing board at the entrance that displays fishing conditions in local lakes and rivers with coordinating gear in end-cap displays in the fishing aisles. The Company engages its customers through in-store features, such as the Braggin Board, various contests (such as Bucks & Bulls and Fish Alaska), and customer-owned taxidermy displays on the walls. It also hosts in-store programs, such as ladies night and a range of instructional seminars, from Dutch oven cooking to choosing the right binocular.
Hibbett Sports Company Profile
Hibbett Sports, Inc. operates athletic specialty stores in small and mid-sized markets in the South, Southwest, Mid-Atlantic and the Midwest regions of the United States. As of January 28, 2017, the Company had operated 1,078 stores consisting of 1,059 Hibbett Sports stores and 19 smaller-format Sports Additions athletic shoe stores in 35 states. Its primary retail format is Hibbett Sports, which is an approximately 5,000 square foot store. Hibbett Sports stores offer a merchandising mix of localized apparel, footwear, equipment and accessories designed to appeal to a range of customers within each market. Its 19 Sports Additions stores are enclosed mall-based stores, averaging 2,500 square feet with approximately 90% of merchandise consisting of athletic footwear and the remainder consisting of caps and a limited assortment of apparel. Hibbett Team Sales, Inc., a subsidiary of the Company, is a supplier of customized athletic apparel, equipment and footwear.
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