Critical Survey: Woolworths (OTCMKTS:WLWHY) & Sportsman’s Warehouse (NASDAQ:SPWH)

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

Volatility and Risk

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

Analyst Ratings

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

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

Sportsman’s Warehouse currently has a consensus price target of $2.58, indicating a potential upside of 104.86%. 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 company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportsman’s Warehouse	$1.22 billion	0.04	-$50.06 million	($1.30)	-0.97
Woolworths	$4.42 billion	0.73	$134.61 million	N/A	N/A

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

Summary

Woolworths beats Sportsman’s Warehouse on 9 of the 13 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 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.