Sportsman’s Warehouse (NASDAQ:SPWH) & AutoCanada (OTCMKTS:AOCIF) Financial Comparison

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

Earnings & Valuation

This table compares AutoCanada and Sportsman’s Warehouse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoCanada	N/A	N/A	N/A	$2.17	8.43
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-0.92

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

Institutional and Insider Ownership

44.8% of AutoCanada shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 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 will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for AutoCanada and Sportsman’s Warehouse, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoCanada	0	3	0	0	2.00
Sportsman’s Warehouse	1	2	2	0	2.20

Sportsman’s Warehouse has a consensus price target of $2.58, suggesting a potential upside of 117.09%. Given Sportsman’s Warehouse’s stronger consensus rating and higher possible upside, analysts clearly believe Sportsman’s Warehouse is more favorable than AutoCanada.

Profitability

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

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

Summary

Sportsman’s Warehouse beats AutoCanada on 6 of the 11 factors compared between the two stocks.

About AutoCanada

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships and related business. The company offers a range of automotive products and services, including new and used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, and extended service contracts; and vehicle protection, after-market products, and auction services. It also arranges financing and insurance for vehicle purchases by its customers through third-party finance and insurance sources. The company sells its vehicles under the Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Mazda, Mercedes-Benz, BMW, MINI, Ford, Acura, Honda, Kia, and Porsche brands. It operates franchised dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick in Canada, as well as in Illinois, the United States. The company also offers used vehicles online. AutoCanada Inc. was incorporated in 2009 and is based in Edmonton, Canada.

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.