Sportsman’s Warehouse (NASDAQ:SPWH – Get Free Report) and Destination XL Group (NASDAQ:DXLG – Get Free Report) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Profitability
This table compares Sportsman’s Warehouse and Destination XL Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sportsman’s Warehouse | -3.01% | -7.65% | -1.96% |
| Destination XL Group | -0.59% | -0.26% | -0.10% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Sportsman’s Warehouse and Destination XL Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sportsman’s Warehouse | 0 | 1 | 5 | 0 | 2.83 |
| Destination XL Group | 0 | 0 | 1 | 0 | 3.00 |
Volatility & Risk
Sportsman’s Warehouse has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Valuation & Earnings
This table compares Sportsman’s Warehouse and Destination XL Group”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 | $1.20 billion | 0.09 | -$33.06 million | ($0.96) | -3.02 |
| Destination XL Group | $467.02 million | 0.15 | $3.06 million | ($0.05) | -26.20 |
Destination XL Group has lower revenue, but higher earnings than Sportsman’s Warehouse. Destination XL Group is trading at a lower price-to-earnings ratio than Sportsman’s Warehouse, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 73.5% of Destination XL Group shares are held by institutional investors. 2.7% of Sportsman’s Warehouse shares are held by insiders. Comparatively, 14.3% of Destination XL Group 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.
Summary
Destination XL Group beats Sportsman’s Warehouse on 10 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 Destination XL Group
Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men’s clothing and shoes in the United States. The company’s stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men’s Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.
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