Head-To-Head Survey: Canada Goose (NYSE:GOOS) & Sportsman’s Warehouse (NASDAQ:SPWH)
by Sarita Garza · The Markets DailySportsman’s Warehouse (NASDAQ:SPWH – Get Free Report) and Canada Goose (NYSE:GOOS – Get Free Report) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.
Earnings and Valuation
This table compares Sportsman’s Warehouse and Canada Goose”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sportsman’s Warehouse | $1.20 billion | 0.05 | -$33.06 million | ($0.97) | -1.45 |
| Canada Goose | $969.08 million | 1.31 | $68.13 million | $0.18 | 72.80 |
Canada Goose has lower revenue, but higher earnings than Sportsman’s Warehouse. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than Canada Goose, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 83.6% of Canada Goose shares are held by institutional investors. 1.8% of Sportsman’s Warehouse shares are held by company insiders. Comparatively, 0.5% of Canada Goose shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Sportsman’s Warehouse has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Canada Goose has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Sportsman’s Warehouse and Canada Goose, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sportsman’s Warehouse | 1 | 1 | 5 | 0 | 2.57 |
| Canada Goose | 2 | 3 | 4 | 1 | 2.40 |
Sportsman’s Warehouse presently has a consensus price target of $2.88, indicating a potential upside of 103.90%. Canada Goose has a consensus price target of $15.00, indicating a potential upside of 14.47%. Given Sportsman’s Warehouse’s stronger consensus rating and higher probable upside, research analysts clearly believe Sportsman’s Warehouse is more favorable than Canada Goose.
Profitability
This table compares Sportsman’s Warehouse and Canada Goose’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sportsman’s Warehouse | -3.05% | -7.20% | -1.72% |
| Canada Goose | 1.96% | 15.35% | 4.62% |
Summary
Canada Goose 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 Canada Goose
Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. The company operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.