Sportsman’s Warehouse (NASDAQ:SPWH) and Hennes & Mauritz (OTCMKTS:HNNMY) Head-To-Head Review

Sportsman’s Warehouse (NASDAQ:SPWH) and Hennes & Mauritz (OTCMKTS:HNNMY) are both retail/wholesale 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.

Insider & Institutional Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are held by institutional investors. 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

Sportsman’s Warehouse has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-4.14%	-10.30%	-2.38%
Hennes & Mauritz	5.48%	30.79%	7.32%

Valuation and Earnings

This table compares Sportsman’s Warehouse and Hennes & Mauritz”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-1.02
Hennes & Mauritz	$23.01 billion	1.02	$1.23 billion	$0.16	20.81

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	1	3	0	2.40
Hennes & Mauritz	2	4	0	1	2.00

Sportsman’s Warehouse presently has a consensus price target of $2.94, indicating a potential upside of 122.54%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Sportsman’s Warehouse is more favorable than Hennes & Mauritz.

Summary

Hennes & Mauritz beats Sportsman’s Warehouse on 10 of the 15 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 Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.