Reviewing AutoCanada (OTCMKTS:AOCIF) & Sportsman’s Warehouse (NASDAQ:SPWH)

Sportsman’s Warehouse (NASDAQ:SPWH) and AutoCanada (OTCMKTS:AOCIF) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Valuation & Earnings

This table compares Sportsman’s Warehouse and AutoCanada”s 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	($1.30)	-0.92
AutoCanada	N/A	N/A	N/A	$2.17	8.43

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

Insider and Institutional Ownership

83.0% of Sportsman’s Warehouse shares are owned by institutional investors. Comparatively, 44.8% of AutoCanada shares are owned by institutional investors. 3.8% of Sportsman’s Warehouse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Sportsman’s Warehouse and AutoCanada’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%
AutoCanada	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Sportsman’s Warehouse and AutoCanada, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	2	2	0	2.20
AutoCanada	0	3	0	0	2.00

Sportsman’s Warehouse currently has a consensus price target of $2.58, indicating a potential upside of 117.09%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, research analysts plainly believe Sportsman’s Warehouse is more favorable than AutoCanada.

Summary

Sportsman’s Warehouse beats AutoCanada on 6 of the 11 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 AutoCanada

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships and related business. The company offers a range of automotive products and services, including new and used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, and extended service contracts; and vehicle protection, after-market products, and auction services. It also arranges financing and insurance for vehicle purchases by its customers through third-party finance and insurance sources. The company sells its vehicles under the Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Mazda, Mercedes-Benz, BMW, MINI, Ford, Acura, Honda, Kia, and Porsche brands. It operates franchised dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick in Canada, as well as in Illinois, the United States. The company also offers used vehicles online. AutoCanada Inc. was incorporated in 2009 and is based in Edmonton, Canada.