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

Dividends

Dover Corporation pays an annual dividend of $1.88 per share and has a dividend yield of 2.0%. American Outdoor Brands Corporation does not pay a dividend. Dover Corporation pays out 47.1% of its earnings in the form of a dividend. American Outdoor Brands Corporation has increased its dividend for 61 consecutive years.

Earnings & Valuation

This table compares American Outdoor Brands Corporation and Dover Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Outdoor Brands Corporation $825.26 million 1.05 $204.58 million $1.60 10.08
Dover Corporation $7.29 billion 1.99 $1.22 billion $3.99 23.32

Dover 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 Dover Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for American Outdoor Brands Corporation and Dover Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Outdoor Brands Corporation 0 5 5 0 2.50
Dover Corporation 0 10 7 0 2.41

American Outdoor Brands Corporation currently has a consensus target price of $19.35, suggesting a potential upside of 20.04%. Dover Corporation has a consensus target price of $91.73, suggesting a potential downside of 1.41%. Given American Outdoor Brands Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe American Outdoor Brands Corporation is more favorable than Dover Corporation.

Institutional and Insider Ownership

72.5% of American Outdoor Brands Corporation shares are held by institutional investors. Comparatively, 86.0% of Dover Corporation shares are held by institutional investors. 2.3% of American Outdoor Brands Corporation shares are held by insiders. Comparatively, 2.5% of Dover Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares American Outdoor Brands Corporation and Dover 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% 27.91% 14.47%
Dover Corporation 8.61% 13.36% 5.22%

Volatility & Risk

American Outdoor Brands Corporation has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Dover Corporation has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Summary

Dover Corporation beats American Outdoor Brands Corporation on 10 of the 17 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 Dover Corporation

Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.

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