Head to Head Survey: Woolworths (OTCMKTS:WLWHY) and Sportsman’s Warehouse (NASDAQ:SPWH)

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

Valuation & Earnings

This table compares Woolworths and Sportsman’s Warehouse”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woolworths	$4.42 billion	0.73	$134.61 million	N/A	N/A
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-1.02

Woolworths has higher revenue and earnings than Sportsman’s Warehouse.

Volatility and Risk

Woolworths has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Woolworths	N/A	N/A	N/A
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Analyst Ratings

This is a breakdown of current ratings and target prices for Woolworths and Sportsman’s Warehouse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woolworths	0	1	0	1	3.00
Sportsman’s Warehouse	1	1	2	0	2.25

Sportsman’s Warehouse has a consensus target price of $2.58, indicating a potential upside of 94.24%. Given Sportsman’s Warehouse’s higher probable upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Woolworths.

Institutional and Insider Ownership

83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 3.8% of Sportsman’s Warehouse shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Woolworths beats Sportsman’s Warehouse on 9 of the 13 factors compared between the two stocks.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.

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.