Analyzing Urban Outfitters (NASDAQ:URBN) & Sportsman’s Warehouse (NASDAQ:SPWH)

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

Institutional & Insider Ownership

77.6% of Urban Outfitters shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 31.8% of Urban Outfitters shares are owned by insiders. Comparatively, 1.8% of Sportsman’s Warehouse shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Urban Outfitters has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Valuation & Earnings

This table compares Urban Outfitters 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
Urban Outfitters	$5.55 billion	1.16	$402.46 million	$5.30	13.51
Sportsman’s Warehouse	$1.20 billion	0.04	-$33.06 million	($0.97)	-1.24

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Outfitters	1	8	8	0	2.41
Sportsman’s Warehouse	1	1	4	0	2.50

Urban Outfitters currently has a consensus price target of $86.67, indicating a potential upside of 21.01%. Sportsman’s Warehouse has a consensus price target of $2.95, indicating a potential upside of 145.83%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Urban Outfitters.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Urban Outfitters	8.15%	18.33%	10.04%
Sportsman’s Warehouse	-3.05%	-7.20%	-1.72%

Summary

Urban Outfitters beats Sportsman’s Warehouse on 11 of the 14 factors compared between the two stocks.

About Urban Outfitters

Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.

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.