Contrasting Destination Maternity (OTCMKTS:DESTQ) and Sportsman’s Warehouse (NASDAQ:SPWH)

Destination Maternity (OTCMKTS:DESTQ) and Sportsman’s Warehouse (NASDAQ:SPWH) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Valuation & Earnings

This table compares Destination Maternity and Sportsman’s Warehouse”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination Maternity	N/A	N/A	N/A	N/A	N/A
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.97

Destination Maternity has higher earnings, but lower revenue than Sportsman’s Warehouse.

Analyst Recommendations

This is a breakdown of recent recommendations for Destination Maternity and Sportsman’s Warehouse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Destination Maternity	0	0	0	0	0.00
Sportsman’s Warehouse	1	1	3	0	2.40

Sportsman’s Warehouse has a consensus price target of $2.94, indicating a potential upside of 133.13%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Destination Maternity.

Institutional and Insider Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. 0.4% of Destination Maternity shares are held by insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Destination Maternity	N/A	N/A	N/A
Sportsman’s Warehouse	-4.14%	-10.30%	-2.38%

Summary

Sportsman’s Warehouse beats Destination Maternity on 6 of the 9 factors compared between the two stocks.

About Destination Maternity

Destination Maternity Corp. engages in the design, manufacture and sale of maternity apparel and related accessories. It operates stores under three brands: Motherhood Maternity, A Pea in the Pod, and Destination Maternity. The Motherhood Maternity brand serves maternity apparel business, which is used in special occasion, offering quality merchandise at affordable value. The A Pea in the Pod brand is a contemporary, fashion-forward assortment including a curated selection of exclusive designer labels at premium pricing, offering the mom2be fashionable maternity pieces that reflect her uncompromising sense of style in both casual and career apparel. The Destination Maternity brand relates to a selection of fashion offers all three brands, plus skincare, fitness, and nutritional products to pamper the pregnant woman. The company was founded in 1982 and is headquartered in Moorestown, NJ.

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.