Financial Analysis: Sleep Number (NASDAQ:SNBR) versus GoPro (NASDAQ:GPRO)

GoPro (NASDAQ:GPRO) and Sleep Number (NASDAQ:SNBR) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Volatility & Risk

GoPro has a beta of 2.42, indicating that its stock price is 142% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for GoPro and Sleep Number, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoPro	2	0	0	0	1.00
Sleep Number	2	2	0	0	1.50

Sleep Number has a consensus price target of $3.50, indicating a potential upside of 2,700.00%. Given Sleep Number’s stronger consensus rating and higher probable upside, analysts clearly believe Sleep Number is more favorable than GoPro.

Earnings & Valuation

This table compares GoPro and Sleep Number”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoPro	$651.54 million	0.38	-$93.49 million	($0.99)	-1.34
Sleep Number	$1.34 billion	0.00	-$131.96 million	($7.56)	-0.02

GoPro has higher earnings, but lower revenue than Sleep Number. GoPro is trading at a lower price-to-earnings ratio than Sleep Number, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

70.1% of GoPro shares are held by institutional investors. Comparatively, 85.7% of Sleep Number shares are held by institutional investors. 18.1% of GoPro shares are held by insiders. Comparatively, 3.6% of Sleep Number shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares GoPro and Sleep Number’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoPro	-28.52%	-411.41%	-28.86%
Sleep Number	-12.98%	N/A	-16.48%

Summary

Sleep Number beats GoPro on 9 of the 13 factors compared between the two stocks.

About GoPro

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gear, such as bags, backpacks, cases, t-shirts, hats, and other soft goods. In addition, the company provides mobile, desktop, and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.