ON (NYSE:ONON) vs. Sportsman’s Warehouse (NASDAQ:SPWH) Head to Head Review

ON (NYSE:ONON) and Sportsman’s Warehouse (NASDAQ:SPWH) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

36.4% of ON shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 68.6% of ON shares are owned by insiders. Comparatively, 3.8% 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ON	7.92%	15.72%	8.99%
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ON and Sportsman’s Warehouse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	1	4	15	2	2.82
Sportsman’s Warehouse	1	1	2	0	2.25

ON currently has a consensus price target of $55.05, suggesting a potential upside of 44.53%. Sportsman’s Warehouse has a consensus price target of $2.58, suggesting a potential upside of 110.03%. Given Sportsman’s Warehouse’s higher possible upside, analysts plainly believe Sportsman’s Warehouse is more favorable than ON.

Risk & Volatility

ON has a beta of 2.1, meaning that its stock price is 110% more 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.

Valuation and Earnings

This table compares ON 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
ON	$3.64 billion	6.68	$245.87 million	$0.93	40.96
Sportsman’s Warehouse	$1.22 billion	0.04	-$50.06 million	($1.30)	-0.95

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

Summary

ON beats Sportsman’s Warehouse on 13 of the 15 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

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.