American Outdoor Brands Corporation (NASDAQ: AOBC) and Rexnord Corporation (NYSE:RXN) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Earnings & Valuation

This table compares American Outdoor Brands Corporation and Rexnord Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Outdoor Brands Corporation $903.19 million 0.83 $257.73 million $1.60 8.70
Rexnord Corporation $1.93 billion 1.31 $327.90 million $0.67 36.24

Rexnord Corporation has higher revenue and earnings than American Outdoor Brands Corporation. American Outdoor Brands Corporation is trading at a lower price-to-earnings ratio than Rexnord Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

72.6% of American Outdoor Brands Corporation shares are held by institutional investors. 2.3% of American Outdoor Brands Corporation shares are held by insiders. Comparatively, 3.5% of Rexnord Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

American Outdoor Brands Corporation has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Rexnord Corporation has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Profitability

This table compares American Outdoor Brands Corporation and Rexnord Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Outdoor Brands Corporation 10.96% 27.85% 14.59%
Rexnord Corporation 4.22% 14.27% 3.95%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Outdoor Brands Corporation and Rexnord Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Outdoor Brands Corporation 0 7 3 0 2.30
Rexnord Corporation 0 1 4 0 2.80

American Outdoor Brands Corporation presently has a consensus price target of $19.00, suggesting a potential upside of 36.49%. Rexnord Corporation has a consensus price target of $26.00, suggesting a potential upside of 7.08%. Given American Outdoor Brands Corporation’s higher probable upside, equities analysts plainly believe American Outdoor Brands Corporation is more favorable than Rexnord Corporation.

Summary

Rexnord Corporation beats American Outdoor Brands Corporation on 8 of the 14 factors compared between the two stocks.

About American Outdoor Brands Corporation

American Outdoor Brands Corporation, formerly Smith & Wesson Holding Corporation, is a manufacturer of firearms and a provider of accessory products for the shooting, hunting and outdoor enthusiast. The Company operates through two segments. The Firearms segment manufactures handgun and long gun products sold under the Smith & Wesson, M&P and Thompson/Center Arms brands, as well as providing forging, machining and precision plastic injection molding services. The Outdoor Products & Accessories segment provides shooting, hunting and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems and tactical lighting products. Brands in Outdoor Products & Accessories include Crimson Trace, Caldwell Shooting Supplies, Wheeler Engineering, Lockdown Vault Accessories, BOG POD and Golden Rod Moisture Control, as well as knives and specialty tools under Schrade, Old Timer, Uncle Henry and Imperial.

About Rexnord Corporation

Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG.

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