Sportsman’s Warehouse (NASDAQ:SPWH – Get Free Report) and Children’s Place (NASDAQ:PLCE – Get Free Report) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
Risk & Volatility
Sportsman’s Warehouse has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Children’s Place has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Sportsman’s Warehouse and Children’s Place, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sportsman’s Warehouse | 1 | 1 | 3 | 0 | 2.40 |
| Children’s Place | 1 | 1 | 0 | 0 | 1.50 |
Institutional & Insider Ownership
83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 1.8% of Sportsman’s Warehouse shares are owned by company insiders. Comparatively, 0.6% of Children’s Place shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Sportsman’s Warehouse and Children’s Place”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sportsman’s Warehouse | $1.21 billion | 0.05 | -$50.06 million | ($1.30) | -1.22 |
| Children’s Place | $1.21 billion | 0.05 | -$88.26 million | ($4.01) | -0.74 |
Sportsman’s Warehouse has higher revenue and earnings than Children’s Place. Sportsman’s Warehouse is trading at a lower price-to-earnings ratio than Children’s Place, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sportsman’s Warehouse and Children’s Place’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sportsman’s Warehouse | -4.14% | -10.30% | -2.38% |
| Children’s Place | -7.30% | N/A | -10.79% |
Summary
Sportsman’s Warehouse beats Children’s Place on 10 of the 14 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 Children’s Place
The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.
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