Head-To-Head Review: Lulu’s Fashion Lounge (NASDAQ:LVLU) versus Sportsman’s Warehouse (NASDAQ:SPWH)

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

Insider & Institutional Ownership

73.8% of Lulu’s Fashion Lounge shares are held by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are held by institutional investors. 7.8% of Lulu’s Fashion Lounge shares are held by company insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Lulu’s Fashion Lounge 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
Lulu’s Fashion Lounge	$282.28 million	0.08	-$13.71 million	($3.50)	-2.23
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.97

Lulu’s Fashion Lounge has higher earnings, but lower revenue than Sportsman’s Warehouse. Lulu’s Fashion Lounge 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lulu’s Fashion Lounge and Sportsman’s Warehouse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lulu’s Fashion Lounge	1	0	0	0	1.00
Sportsman’s Warehouse	1	1	2	0	2.25

Sportsman’s Warehouse has a consensus price target of $2.58, indicating a potential upside of 105.03%. Given Sportsman’s Warehouse’s stronger consensus rating and higher probable upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Lulu’s Fashion Lounge.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lulu’s Fashion Lounge	-3.56%	-423.50%	-9.95%
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Risk and Volatility

Lulu’s Fashion Lounge has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Summary

Sportsman’s Warehouse beats Lulu’s Fashion Lounge on 10 of the 14 factors compared between the two stocks.

About Lulu’s Fashion Lounge

Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.

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.