Analyzing Sportsman’s Warehouse (NASDAQ:SPWH) and Stein Mart (OTCMKTS:SMRTQ)

Stein Mart (OTCMKTS:SMRTQ) and Sportsman’s Warehouse (NASDAQ:SPWH) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 39.4% of Stein Mart 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, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Stein Mart and Sportsman’s Warehouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stein Mart	0	0	0	0	0.00
Sportsman’s Warehouse	1	1	2	0	2.25

Sportsman’s Warehouse has a consensus target price of $2.58, indicating a potential upside of 103.41%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, analysts clearly believe Sportsman’s Warehouse is more favorable than Stein Mart.

Valuation & Earnings

This table compares Stein Mart 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
Stein Mart	N/A	N/A	N/A	N/A	N/A
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.98

Stein Mart has higher earnings, but lower revenue than Sportsman’s Warehouse.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stein Mart	N/A	N/A	N/A
Sportsman’s Warehouse	-4.17%	-10.68%	-2.39%

Summary

Sportsman’s Warehouse beats Stein Mart on 5 of the 9 factors compared between the two stocks.

About Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.

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.