Head to Head Survey: JOANN (NASDAQ:JOANQ) and Big 5 Sporting Goods (NASDAQ:BGFV)

JOANN (NASDAQ:JOANQ) and Big 5 Sporting Goods (NASDAQ:BGFV) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

This table compares JOANN and Big 5 Sporting Goods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOANN	-11.10%	N/A	-4.99%
Big 5 Sporting Goods	-1.82%	-6.26%	-2.33%

Analyst Ratings

This is a summary of recent ratings and recommmendations for JOANN and Big 5 Sporting Goods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOANN	0	0	0	0	N/A
Big 5 Sporting Goods	0	1	0	0	2.00

Big 5 Sporting Goods has a consensus target price of $9.50, indicating a potential upside of 197.81%. Given Big 5 Sporting Goods’ higher probable upside, analysts clearly believe Big 5 Sporting Goods is more favorable than JOANN.

Institutional & Insider Ownership

72.1% of JOANN shares are owned by institutional investors. Comparatively, 42.0% of Big 5 Sporting Goods shares are owned by institutional investors. 73.4% of JOANN shares are owned by company insiders. Comparatively, 6.0% of Big 5 Sporting Goods shares are owned by company 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.

Risk and Volatility

JOANN has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Big 5 Sporting Goods has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.

Earnings and Valuation

This table compares JOANN and Big 5 Sporting Goods’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOANN	$2.22 billion	0.00	-$200.60 million	($5.81)	-0.01
Big 5 Sporting Goods	$884.74 million	0.08	-$7.08 million	($0.72)	-4.39

Big 5 Sporting Goods has lower revenue, but higher earnings than JOANN. Big 5 Sporting Goods is trading at a lower price-to-earnings ratio than JOANN, indicating that it is currently the more affordable of the two stocks.

Summary

Big 5 Sporting Goods beats JOANN on 7 of the 12 factors compared between the two stocks.

About JOANN

JOANN Inc. operates as a specialty retailer of sewing and fabrics, and arts and crafts category products in the United States. The company products in sewing category include cotton fabrics; warm fabrics, such as fleece and flannel fabrics; home decorating and utility fabrics and accessories; fashion and sportswear fabrics; special occasion fabrics; pillow forms; stuffing, batting, and foams; seasonally themed and licensed fabric designs; and sewing construction supplies comprising cutting implements, threads, zippers, trims, tapes, pins, elastic, and buttons, as well as patterns for sewing projects. Its products in arts and crafts, home décor, and other categories consist of yarn and yarn accessories, and needlecraft kits and supplies; paper crafting components; craft materials; fine art materials; sewing machines, craft technology, lighting, irons, organizers, and other products; artificial floral products; seasonal décor and entertaining products; home décor accessories; ready-made frames; comprehensive assortment books and magazines; and non-merchandise services. The company offers its products through retail stores, as well as online. The company was formerly known as Jo-Ann Stores Holdings Inc. and changed its name to JOANN Inc. in February 2021. JOANN Inc. was founded in 1943 and is based in Hudson, Ohio. On March 18, 2024, JOANN Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About Big 5 Sporting Goods

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. Its products include athletic shoes, apparel, and accessories. The company also offers a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, and winter and summer recreation, as well as home recreation. It also provides private label items, such as shoes, apparel, camping equipment, fishing supplies, and snow sport equipment. The company sells private label merchandise under its trademarks comprising Golden Bear, Harsh, Pacifica, and Rugged Exposure. It also operates an e-commerce platform under the Big 5 Sporting Goods name. Big 5 Sporting Goods Corporation was founded in 1955 and is headquartered in El Segundo, California.