Capri (NYSE:CPRI) versus Sportsman’s Warehouse (NASDAQ:SPWH) Critical Comparison

Capri (NYSE:CPRI) and Sportsman’s Warehouse (NASDAQ:SPWH) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional and Insider Ownership

84.3% of Capri shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 2.3% of Capri shares are owned by company insiders. Comparatively, 2.7% of Sportsman’s Warehouse shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Capri has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	0	8	5	0	2.38
Sportsman’s Warehouse	0	0	5	0	3.00

Capri presently has a consensus target price of $24.08, indicating a potential upside of 21.12%. Sportsman’s Warehouse has a consensus target price of $3.45, indicating a potential upside of 13.49%. Given Capri’s higher possible upside, equities analysts plainly believe Capri is more favorable than Sportsman’s Warehouse.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capri	-26.73%	-53.50%	-6.67%
Sportsman’s Warehouse	-3.10%	-7.65%	-1.87%

Valuation & Earnings

This table compares Capri 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
Capri	$4.44 billion	0.53	-$1.18 billion	($9.41)	-2.11
Sportsman’s Warehouse	$1.21 billion	0.10	-$33.06 million	($0.98)	-3.10

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

Summary

Sportsman’s Warehouse beats Capri on 7 of the 13 factors compared between the two stocks.

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

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.