Boot Barn (NYSE:BOOT) versus Sportsman’s Warehouse (NASDAQ:SPWH) Financial Comparison

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

Analyst Ratings

This is a summary of current ratings and target prices for Sportsman’s Warehouse and Boot Barn, as reported by MarketBeat.

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

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

Profitability

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

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

Valuation & Earnings

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

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

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

Volatility and Risk

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

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.