Head-To-Head Analysis: ON (NYSE:ONON) versus Sportsman’s Warehouse (NASDAQ:SPWH)

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

Insider and Institutional Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 36.4% of ON shares are held by institutional investors. 3.8% of Sportsman’s Warehouse shares are held by company insiders. Comparatively, 68.6% of ON shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-4.17%	-10.22%	-2.36%
ON	7.92%	15.72%	8.99%

Earnings & Valuation

This table compares Sportsman’s Warehouse and ON”s 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	0.04	-$50.06 million	($1.30)	-1.07
ON	$3.64 billion	6.53	$245.87 million	$0.93	40.04

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

Volatility and Risk

Sportsman’s Warehouse has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, ON has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sportsman’s Warehouse and ON, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	1	2	0	2.25
ON	1	4	15	2	2.82

Sportsman’s Warehouse currently has a consensus price target of $2.58, suggesting a potential upside of 85.85%. ON has a consensus price target of $55.05, suggesting a potential upside of 47.83%. Given Sportsman’s Warehouse’s higher probable upside, equities research analysts plainly believe Sportsman’s Warehouse is more favorable than ON.

Summary

ON beats Sportsman’s Warehouse on 13 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 ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.