Head-To-Head Review: JOANN (NASDAQ:JOANQ) & Sportsman’s Warehouse (NASDAQ:SPWH)

JOANN (NASDAQ:JOANQ) and Sportsman’s Warehouse (NASDAQ:SPWH) are both small-cap consumer cyclical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

JOANN has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for JOANN and Sportsman’s Warehouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOANN	0	0	0	0	N/A
Sportsman’s Warehouse	0	2	0	0	2.00

Sportsman’s Warehouse has a consensus target price of $4.00, indicating a potential upside of 16.28%. Given Sportsman’s Warehouse’s higher possible upside, analysts plainly believe Sportsman’s Warehouse is more favorable than JOANN.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JOANN	-11.10%	N/A	-4.99%
Sportsman’s Warehouse	-2.25%	-8.86%	-2.50%

Institutional and Insider Ownership

72.1% of JOANN shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 73.4% of JOANN shares are owned by insiders. Comparatively, 1.9% of Sportsman’s Warehouse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares JOANN and Sportsman’s Warehouse’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.03
Sportsman’s Warehouse	$1.29 billion	0.10	-$29.00 million	($0.78)	-4.41

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

Summary

Sportsman’s Warehouse beats JOANN on 7 of the 12 factors compared between the two stocks.

About JOANN

JOANN Inc. operates as a specialty retailer of sewing and fabrics, and arts and crafts category products in the United States. The company products in sewing category include cotton fabrics; warm fabrics, such as fleece and flannel fabrics; home decorating and utility fabrics and accessories; fashion and sportswear fabrics; special occasion fabrics; pillow forms; stuffing, batting, and foams; seasonally themed and licensed fabric designs; and sewing construction supplies comprising cutting implements, threads, zippers, trims, tapes, pins, elastic, and buttons, as well as patterns for sewing projects. Its products in arts and crafts, home décor, and other categories consist of yarn and yarn accessories, and needlecraft kits and supplies; paper crafting components; craft materials; fine art materials; sewing machines, craft technology, lighting, irons, organizers, and other products; artificial floral products; seasonal décor and entertaining products; home décor accessories; ready-made frames; comprehensive assortment books and magazines; and non-merchandise services. The company offers its products through retail stores, as well as online. The company was formerly known as Jo-Ann Stores Holdings Inc. and changed its name to JOANN Inc. in February 2021. JOANN Inc. was founded in 1943 and is based in Hudson, Ohio. On March 18, 2024, JOANN Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About Sportsman’s Warehouse

Sportsman's Warehouse Holdings, Inc., together with its subsidiaries, operates as an outdoor sporting goods retailer in the United States. It offers camping products, such as backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents, and tools; and apparel products, including camouflage, jackets, hats, outerwear, sportswear, technical gear, and work wear. The company also provides fishing products comprising bait, electronics, fishing rods, flotation items, fly fishing products, lines, lures, reels, tackles, and small boats; and foot wear products consist of hiking and work boots, socks, sport sandals, technical footwear, trial and casual shoes, and waders. In addition, it offers hunting and shooting products, such as ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, firearms safety and storage products, reloading equipment, and shooting gear products; and optics, electronics, accessories, and other products comprising gift items, GPS devices, knives, lighting, optics, and two-way radios. Further, the company's stores provide archery technician services, fishing-reel line winding, scope mounting and bore sighting, and cleaning services, as well as issues hunting and fishing licenses. Additionally, it offers various private label and special make-up offerings under the Rustic Ridge, Killik, Vital Impact, Yukon Gold, Lost Creek, and Sportsman's Warehouse brands. Sportsman's Warehouse Holdings, Inc. was founded in 1986 and is headquartered in West Jordan, Utah.