Reviewing Five Below (NASDAQ:FIVE) and SharkNinja (NYSE:SN)

Five Below (NASDAQ:FIVE) and SharkNinja (NYSE:SN) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Five Below and SharkNinja’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five Below	7.53%	18.70%	7.87%
SharkNinja	10.70%	29.07%	14.70%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Five Below and SharkNinja, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Below	0	7	15	1	2.74
SharkNinja	0	2	8	0	2.80

Five Below presently has a consensus price target of $240.10, suggesting a potential upside of 7.61%. SharkNinja has a consensus price target of $150.00, suggesting a potential upside of 34.52%. Given SharkNinja’s stronger consensus rating and higher possible upside, analysts plainly believe SharkNinja is more favorable than Five Below.

Volatility and Risk

Five Below has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, SharkNinja has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Five Below and SharkNinja”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Below	$4.76 billion	2.59	$358.64 million	$6.46	34.54
SharkNinja	$6.40 billion	2.47	$701.37 million	$4.96	22.48

SharkNinja has higher revenue and earnings than Five Below. SharkNinja is trading at a lower price-to-earnings ratio than Five Below, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

34.8% of SharkNinja shares are owned by institutional investors. 1.9% of Five Below shares are owned by insiders. Comparatively, 11.1% of SharkNinja shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

SharkNinja beats Five Below on 10 of the 15 factors compared between the two stocks.

About Five Below

Five Below, Inc. operates as a specialty value retailer in the United States. The company offers range of accessories, which includes novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and t-shirts, as well as nail polish, lip gloss, fragrance, and branded cosmetics; and personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options. It provides assortment of sports balls, team sports merchandise, and fitness accessories comprising hand weights, jump ropes, and gym balls; various games, such as board games, puzzles, collectibles, and toys, including remote control; and summer season sports, which includes pool, beach, and outdoor toys, as well as games and accessories. In addition, the company offers accessories for cell phones, tablets, audio, and computers, as well as cases, chargers, headphones, and other related items; and media products including books, video games, and DVDs. It also provides assortment of craft activity kits, and arts and crafts supplies, such as crayons, markers, and stickers; and school products comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and locker accessories. Further, the company offers party products, which includes party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food products, as well as sells chilled drinks through coolers; and provides seasonally specific items used to celebrate and decorate for events. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania.

About SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.