Contrasting Bath & Body Works (NYSE:BBWI) & Sportsman’s Warehouse (NASDAQ:SPWH)

Bath & Body Works (NYSE:BBWI) and Sportsman’s Warehouse (NASDAQ:SPWH) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Bath & Body Works and Sportsman’s Warehouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bath & Body Works	10.83%	-53.48%	13.40%
Sportsman’s Warehouse	-3.94%	-10.16%	-2.28%

Volatility and Risk

Bath & Body Works has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Institutional and Insider Ownership

95.1% of Bath & Body Works shares are held by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are held by institutional investors. 0.3% of Bath & Body Works shares are held by insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Bath & Body Works and Sportsman’s Warehouse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bath & Body Works	1	13	4	0	2.17
Sportsman’s Warehouse	1	2	2	0	2.20

Bath & Body Works currently has a consensus target price of $22.29, suggesting a potential upside of 20.33%. Sportsman’s Warehouse has a consensus target price of $2.58, suggesting a potential upside of 101.82%. Given Sportsman’s Warehouse’s stronger consensus rating and higher probable upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Bath & Body Works.

Earnings and Valuation

This table compares Bath & Body Works and Sportsman’s Warehouse”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bath & Body Works	$7.29 billion	0.51	$649.00 million	$3.84	4.82
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.98

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

Summary

Bath & Body Works beats Sportsman’s Warehouse on 10 of the 14 factors compared between the two stocks.

About Bath & Body Works

Bath & Body Works, Inc. is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company was founded by Leslie Herbert Wexner in 1963 and is headquartered in Columbus, OH.

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.