Head to Head Survey: Sportsman’s Warehouse (SPWH) vs. Big 5 Sporting Goods (BGFV)

Sportsman’s Warehouse (NASDAQ: SPWH) and Big 5 Sporting Goods (NASDAQ:BGFV) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Volatility and Risk

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Sportsman’s Warehouse has a beta of -0.65, meaning that its share price is 165% less volatile than the S&P 500. Comparatively, Big 5 Sporting Goods has a beta of -0.61, meaning that its share price is 161% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Sportsman’s Warehouse and Big 5 Sporting Goods, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sportsman’s Warehouse 0 3 3 0 2.50
Big 5 Sporting Goods 0 2 0 0 2.00

Sportsman’s Warehouse currently has a consensus price target of $5.50, indicating a potential upside of 10.22%. Big 5 Sporting Goods has a consensus price target of $9.00, indicating a potential upside of 23.29%. Given Big 5 Sporting Goods’ higher probable upside, analysts clearly believe Big 5 Sporting Goods is more favorable than Sportsman’s Warehouse.

Profitability

This table compares Sportsman’s Warehouse and Big 5 Sporting Goods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sportsman’s Warehouse 2.19% 56.40% 5.20%
Big 5 Sporting Goods 0.11% 5.97% 2.70%

Dividends

Big 5 Sporting Goods pays an annual dividend of $0.60 per share and has a dividend yield of 8.2%. Sportsman’s Warehouse does not pay a dividend. Big 5 Sporting Goods pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Sportsman’s Warehouse and Big 5 Sporting Goods’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sportsman’s Warehouse $809.67 million 0.26 $17.74 million $0.50 9.98
Big 5 Sporting Goods $1.01 billion 0.15 $1.10 million $0.57 12.81

Sportsman’s Warehouse has higher earnings, but lower revenue than Big 5 Sporting Goods. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than Big 5 Sporting Goods, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.8% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 92.4% of Big 5 Sporting Goods shares are held by institutional investors. 4.2% of Sportsman’s Warehouse shares are held by insiders. Comparatively, 7.9% of Big 5 Sporting Goods shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Sportsman’s Warehouse beats Big 5 Sporting Goods on 9 of the 16 factors compared between the two stocks.

About Sportsman’s Warehouse

Sportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States. It offers camping products, such as backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents, and tools; and clothing products, including camouflage, jackets, hats, outerwear, sportswear, technical gear, and work wear. The company also provides fishing products comprising bait, electronics, fishing rods, flotation items, fly fishing products, lines, lures, reels, tackles, and small boats; and foot wear products consisting of hiking and work boots, socks, sport sandals, technical footwear, trial and casual shoes, and waders. In addition, it offers hunting and shooting products, such as ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, reloading equipment, and shooting gears; and optics, electronics, and accessories, including gift items, GPS devices, knives, lighting, and optics. Further, the company's stores provide archery technician services, fishing-reel line winding, gun bore sighting and scope mounting, and other services, as well as issues hunting and fishing licenses. Additionally, it offers various private label offerings under the Rustic Ridge, Killik, Vital Impact, Yukon Gold, Lost River, and Sportsman's Warehouse brand names. As of August 14, 2017, the company operated 85 retail stores in 22 states. Sportsman's Warehouse Holdings, Inc. was founded in 1986 and is headquartered in Midvale, Utah.

About Big 5 Sporting Goods

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company offers athletic shoes, apparel, and accessories, as well as a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation, and roller sports. It also provides private label items, such as shoes, apparel, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its own trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure; and licensed trademarks, including Beach Feet, Bearpaw, Body Glove, Morrow, and The Realm. As of December 31, 2017, it operated 435 stores and an e-commerce platform under the Big 5 Sporting Goods name. Big 5 Sporting Goods Corporation was founded in 1955 and is headquartered in El Segundo, California.

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