Golfsmith International (NASDAQ: GOLF) and Sportsman’s Warehouse (NASDAQ:SPWH) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares Golfsmith International and Sportsman’s Warehouse’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Golfsmith International N/A N/A N/A ($0.06) N/A
Sportsman’s Warehouse $779.96 million 0.28 $29.66 million $0.52 9.94

Sportsman’s Warehouse has higher revenue and earnings than Golfsmith International. Golfsmith International 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Golfsmith International N/A N/A N/A
Sportsman’s Warehouse 2.84% 71.55% 5.86%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Golfsmith International 0 7 4 0 2.36
Sportsman’s Warehouse 0 3 5 0 2.63

Golfsmith International currently has a consensus target price of $19.58, indicating a potential upside of Infinity. Sportsman’s Warehouse has a consensus target price of $6.56, indicating a potential upside of 26.93%. Given Golfsmith International’s higher possible upside, research analysts clearly believe Golfsmith International is more favorable than Sportsman’s Warehouse.

Summary

Sportsman’s Warehouse beats Golfsmith International on 7 of the 8 factors compared between the two stocks.

Golfsmith International Company Profile

Golfsmith International Holdings, Inc, the parent company of Golfsmith International, Inc, is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs.

Sportsman’s Warehouse Company Profile

Sportsman’s Warehouse Holdings, Inc. is an outdoor sporting goods retailer. The Company has outdoor specialty store base in the Western United States and Alaska. The Company has over 70 stores across approximately 20 states, which are located in power, neighborhood and lifestyle centers. The Company also operates several single-unit, standalone locations. Its stores average approximately 44,000 gross square feet. Its stores include locally relevant features, such as a fishing board at the entrance that displays fishing conditions in local lakes and rivers with coordinating gear in end-cap displays in the fishing aisles. The Company engages its customers through in-store features, such as the Braggin Board, various contests (such as Bucks & Bulls and Fish Alaska), and customer-owned taxidermy displays on the walls. It also hosts in-store programs, such as ladies night and a range of instructional seminars, from Dutch oven cooking to choosing the right binocular.

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