Reviewing Sportsman’s Warehouse (NASDAQ:SPWH) & Caleres (NYSE:CAL)

Caleres (NYSE:CAL) and Sportsman’s Warehouse (NASDAQ:SPWH) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Caleres	1.85%	7.84%	2.42%
Sportsman’s Warehouse	-3.94%	-10.50%	-2.29%

Valuation and Earnings

This table compares Caleres 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
Caleres	$2.76 billion	0.15	-$6.69 million	$1.50	7.85
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.23)	-0.95

Caleres has higher revenue and earnings than Sportsman’s Warehouse. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than Caleres, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.4% of Caleres shares are held by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are held by institutional investors. 3.1% of Caleres shares are held by insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Caleres has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caleres	0	3	0	0	2.00
Sportsman’s Warehouse	1	2	1	0	2.00

Sportsman’s Warehouse has a consensus price target of $2.12, indicating a potential upside of 81.62%. Given Sportsman’s Warehouse’s higher possible upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Caleres.

Summary

Caleres beats Sportsman’s Warehouse on 10 of the 13 factors compared between the two stocks.

About Caleres

Caleres, Inc. engages in the retail and wholesale of footwear business in the United States, Canada, East Asia, and internationally. It operates through Famous Footwear and Brand Portfolio segments. The company offers licensed, branded, and private-label athletic, casual, and dress footwear products. The company provides brand name athletic, casual, and dress shoes, including Nike, Skechers, adidas, Vans, Crocs, Converse, Puma, Birkenstock, New Balance, Under Armour, Dr. Martens, Asics, Timberland, Bearpaw, Skechers, HeyDude, Franco Sarto, Rykä, Vince, Bzees, Veronica Beard, and Zodiac brands, as well as company-owned and licensed brands, such as LifeStride, Dr. Scholl’s Shoes, Blowfish Malibu, and Naturalizer. The company also operates naturalizer.com, naturalizer.ca, vionicshoes.com, samedelman.com, samedelman.co.uk, allenedmonds.com, allenedmonds.ca, drschollsshoes.com, lifestride.com, francosarto.com, ryka.com, bzees.com, and zodiacshoes.com, as well as Vince.com, blowfishshoes.com, and veronicabeard.com websites. In addition, it designs, sources, manufactures, and markets footwear to retail stores, such as online retailers, national chains, department stores, mass merchandisers, and independent retailers. Further, the company wholesales men’s footwear, apparel, leather goods, and accessories under the Allen Edmonds brand; footwear for women under LifeStride brand; Italian footwear Franco Sarto brand; athletic footwear for women under the Rykä brand; women’s shoe collection under the Vince brand; women’s footwear under the Bzees brand; and women’s footwear collection under Veronica Beard brand. The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. Caleres, Inc. was founded in 1878 and is headquartered in Saint Louis, Missouri.

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.