Comparing SIGNA Sports United (NYSE:SSU) and Sportsman’s Warehouse (NASDAQ:SPWH)

SIGNA Sports United (NYSE:SSU – Get Rating) and Sportsman’s Warehouse (NASDAQ:SPWH – Get Rating) 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 valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Valuation and Earnings

This table compares SIGNA Sports United and Sportsman’s Warehouse’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SIGNA Sports United	$1.15 billion	1.46	-$613.33 million	N/A	N/A
Sportsman’s Warehouse	$1.51 billion	0.21	$108.47 million	$2.04	4.07

Sportsman’s Warehouse has higher revenue and earnings than SIGNA Sports United.

Risk & Volatility

SIGNA Sports United has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SIGNA Sports United	N/A	N/A	N/A
Sportsman’s Warehouse	6.12%	17.56%	5.95%

Insider & Institutional Ownership

11.6% of SIGNA Sports United shares are owned by institutional investors. 0.4% of SIGNA Sports United shares are owned by insiders. Comparatively, 1.8% 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SIGNA Sports United	0	2	0	0	2.00
Sportsman’s Warehouse	0	2	1	0	2.33

SIGNA Sports United currently has a consensus target price of $5.10, suggesting a potential upside of 17.24%. Sportsman’s Warehouse has a consensus target price of $13.20, suggesting a potential upside of 59.04%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, analysts clearly believe Sportsman’s Warehouse is more favorable than SIGNA Sports United.

Summary

Sportsman’s Warehouse beats SIGNA Sports United on 10 of the 12 factors compared between the two stocks.

About SIGNA Sports United

(Get Rating)

SIGNA Sports United N.V. operates online sports web shops in the European Union, Switzerland, Norway, the United Kingdom, and the United States. Its product categories include bike, tennis/racket sports, outdoor, and team sports and athleisure. The company is headquartered in Berlin, Germany.

About Sportsman’s Warehouse

(Get Rating)

Sportsman’s Warehouse Holdings, Inc. is an outdoor specialty retailer. The firm engages in the retail of sporting and athletic goods through its wholly owned subsidiaries, Sportsman’s Warehouse, Inc. and Minnesota Merchandising Corp. 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.