Zalando (OTCMKTS:ZLNDY) & Sportsman’s Warehouse (NASDAQ:SPWH) Head-To-Head Contrast

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

Institutional & Insider Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. 2.7% of Sportsman’s Warehouse shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sportsman’s Warehouse and Zalando”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	$1.21 billion	0.04	-$33.06 million	($1.30)	-0.98
Zalando	$13.97 billion	0.46	$243.31 million	$0.48	25.19

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sportsman’s Warehouse and Zalando, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	1	3	0	2.40
Zalando	1	2	3	0	2.33

Sportsman’s Warehouse currently has a consensus target price of $2.94, suggesting a potential upside of 129.49%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Zalando.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-4.14%	-10.30%	-2.38%
Zalando	1.76%	7.90%	2.61%

Volatility and Risk

Sportsman’s Warehouse has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Zalando has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Summary

Zalando beats Sportsman’s Warehouse on 9 of the 13 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 Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.