Head to Head Comparison: Tandy Leather Factory (NASDAQ:TLF) & Sportsman’s Warehouse (NASDAQ:SPWH)

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

Analyst Recommendations

This is a summary of current recommendations for Tandy Leather Factory and Sportsman’s Warehouse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandy Leather Factory	1	0	0	0	1.00
Sportsman’s Warehouse	1	1	2	1	2.60

Sportsman’s Warehouse has a consensus price target of $2.58, indicating a potential upside of 116.18%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Tandy Leather Factory.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tandy Leather Factory	-2.94%	-4.31%	-2.74%
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Volatility & Risk

Tandy Leather Factory has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Earnings & Valuation

This table compares Tandy Leather Factory and Sportsman’s Warehouse”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandy Leather Factory	$76.32 million	0.25	$9.10 million	($0.24)	-9.75
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.92

Tandy Leather Factory has higher earnings, but lower revenue than Sportsman’s Warehouse. Tandy Leather Factory 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.

Insider and Institutional Ownership

56.4% of Tandy Leather Factory shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 36.2% of Tandy Leather Factory shares are owned by company insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Sportsman’s Warehouse beats Tandy Leather Factory on 8 of the 15 factors compared between the two stocks.

About Tandy Leather Factory

Tandy Leather Factory, Inc. engages in the distribution of leather and related products. It offers leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It operates through North America and International geographical segments. The North America geographical segment consists of 115 stores, which offer a broad selection of products combined with leathercraft expertise in a one-stop shop. The International geographical segment comprises of similar to North America segment but generally located in light industrial areas. The company was founded by J. Wray Thompson, Sr. and Ronald C. Morgan in 1980 and is headquartered in Fort Worth, TX.

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.