Contrasting LuxExperience B.V. (NYSE:LUXE) and Sportsman’s Warehouse (NASDAQ:SPWH)

Sportsman’s Warehouse (NASDAQ:SPWH) and LuxExperience B.V. (NYSE:LUXE) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 10.1% of LuxExperience B.V. shares are held by institutional investors. 3.8% of Sportsman’s Warehouse shares are held by insiders. Comparatively, 1.9% of LuxExperience B.V. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Sportsman’s Warehouse has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, LuxExperience B.V. has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sportsman’s Warehouse and LuxExperience B.V., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	2	1	0	2.00
LuxExperience B.V.	1	3	2	0	2.17

Sportsman’s Warehouse currently has a consensus target price of $2.12, suggesting a potential upside of 63.46%. LuxExperience B.V. has a consensus target price of $9.75, suggesting a potential upside of 26.79%. Given Sportsman’s Warehouse’s higher probable upside, equities analysts clearly believe Sportsman’s Warehouse is more favorable than LuxExperience B.V..

Profitability

This table compares Sportsman’s Warehouse and LuxExperience B.V.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-3.94%	-10.50%	-2.29%
LuxExperience B.V.	17.93%	35.63%	21.07%

Valuation & Earnings

This table compares Sportsman’s Warehouse and LuxExperience B.V.”s top-line revenue, earnings per share (EPS) 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	($1.23)	-1.06
LuxExperience B.V.	$1.37 billion	0.48	$620.57 million	$4.09	1.88

LuxExperience B.V. has higher revenue and earnings than Sportsman’s Warehouse. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than LuxExperience B.V., indicating that it is currently the more affordable of the two stocks.

Summary

LuxExperience B.V. beats Sportsman’s Warehouse on 11 of the 14 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 LuxExperience B.V.

MYT Netherlands Parent B.V., through its subsidiary, Mytheresa Group GmbH, operates a luxury e-commerce platform for fashion consumers in Germany, the United States, the rest of Europe, and internationally. The company sells clothes, bags, shoes, accessories, and fine jewelry through online and retail stores. It serves high-income luxury consumers. The company was founded in 1987 and is based in Munich, Germany.