Head-To-Head Contrast: JOANN (NASDAQ:JOANQ) versus Hibbett (NASDAQ:HIBB)

JOANN (NASDAQ:JOANQ) and Hibbett (NASDAQ:HIBB) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Risk & Volatility

JOANN has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Hibbett has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Valuation & Earnings

This table compares JOANN and Hibbett’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.01
Hibbett	$1.73 billion	0.59	$103.16 million	$8.19	10.54

Hibbett has lower revenue, but higher earnings than JOANN. JOANN is trading at a lower price-to-earnings ratio than Hibbett, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

72.1% of JOANN shares are held by institutional investors. Comparatively, 94.1% of Hibbett shares are held by institutional investors. 73.4% of JOANN shares are held by insiders. Comparatively, 3.0% of Hibbett shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for JOANN and Hibbett, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOANN	0	0	0	0	N/A
Hibbett	1	6	0	0	1.86

Hibbett has a consensus target price of $76.79, indicating a potential downside of 11.07%. Given Hibbett’s higher probable upside, analysts clearly believe Hibbett is more favorable than JOANN.

Profitability

This table compares JOANN and Hibbett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOANN	-11.10%	N/A	-4.99%
Hibbett	5.97%	25.72%	10.85%

Summary

Hibbett beats JOANN on 10 of the 12 factors compared between the two stocks.

About JOANN

JOANN Inc. operates as a specialty retailer of sewing and fabrics, and arts and crafts category products in the United States. The company products in sewing category include cotton fabrics; warm fabrics, such as fleece and flannel fabrics; home decorating and utility fabrics and accessories; fashion and sportswear fabrics; special occasion fabrics; pillow forms; stuffing, batting, and foams; seasonally themed and licensed fabric designs; and sewing construction supplies comprising cutting implements, threads, zippers, trims, tapes, pins, elastic, and buttons, as well as patterns for sewing projects. Its products in arts and crafts, home décor, and other categories consist of yarn and yarn accessories, and needlecraft kits and supplies; paper crafting components; craft materials; fine art materials; sewing machines, craft technology, lighting, irons, organizers, and other products; artificial floral products; seasonal décor and entertaining products; home décor accessories; ready-made frames; comprehensive assortment books and magazines; and non-merchandise services. The company offers its products through retail stores, as well as online. The company was formerly known as Jo-Ann Stores Holdings Inc. and changed its name to JOANN Inc. in February 2021. JOANN Inc. was founded in 1943 and is based in Hudson, Ohio. On March 18, 2024, JOANN Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About Hibbett

Hibbett, Inc. together with its subsidiaries, engages in the retail of athletic-inspired fashion products in the United States. Its stores offer a range of merchandise, including athletic footwear, athletic and fashion apparel, team sports equipment, and related accessories. The company operates Hibbett stores, City Gear stores, and Sports Additions athletic shoe stores. It also sells its products through online channels. The company was founded in 1945 and is headquartered in Birmingham, Alabama.