Sportsman’s Warehouse (NASDAQ:SPWH) and Boot Barn (NYSE:BOOT) Head to Head Comparison

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

Earnings and Valuation

This table compares Boot Barn 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
Boot Barn	$2.25 billion	2.02	$225.88 million	$7.35	20.41
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.86

Boot Barn has higher revenue and earnings than Sportsman’s Warehouse. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than Boot Barn, 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. 0.7% of Boot Barn shares are held by company insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Boot Barn and Sportsman’s Warehouse, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boot Barn	0	2	12	0	2.86
Sportsman’s Warehouse	1	1	2	1	2.60

Boot Barn currently has a consensus target price of $226.92, suggesting a potential upside of 51.24%. Sportsman’s Warehouse has a consensus target price of $2.58, suggesting a potential upside of 130.65%. Given Sportsman’s Warehouse’s higher probable upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Boot Barn.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boot Barn	10.02%	18.15%	9.82%
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Volatility and Risk

Boot Barn has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Summary

Boot Barn beats Sportsman’s Warehouse on 11 of the 15 factors compared between the two stocks.

About Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.

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.