Head to Head Survey: Canada Goose (NYSE:GOOS) and Sportsman’s Warehouse (NASDAQ:SPWH)

Sportsman’s Warehouse (NASDAQ:SPWH) and Canada Goose (NYSE:GOOS) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-3.05%	-7.20%	-1.72%
Canada Goose	1.96%	15.35%	4.62%

Earnings and Valuation

This table compares Sportsman’s Warehouse and Canada Goose”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportsman’s Warehouse	$1.20 billion	0.05	-$33.06 million	($0.97)	-1.51
Canada Goose	$969.08 million	1.36	$68.13 million	$0.18	75.25

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sportsman’s Warehouse and Canada Goose, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	1	5	0	2.57
Canada Goose	2	3	4	1	2.40

Sportsman’s Warehouse currently has a consensus price target of $2.88, suggesting a potential upside of 96.92%. Canada Goose has a consensus price target of $15.00, suggesting a potential upside of 10.74%. Given Sportsman’s Warehouse’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sportsman’s Warehouse is more favorable than Canada Goose.

Institutional and Insider Ownership

83.0% of Sportsman’s Warehouse shares are owned by institutional investors. Comparatively, 83.6% of Canada Goose shares are owned by institutional investors. 2.7% of Sportsman’s Warehouse shares are owned by company insiders. Comparatively, 0.5% of Canada Goose shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Sportsman’s Warehouse has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Canada Goose has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Summary

Canada Goose beats Sportsman’s Warehouse on 10 of the 15 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 Canada Goose

Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.