LCI Industries (NYSE: DW) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Valuation & Earnings

This table compares LCI Industries and American Outdoor Brands Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LCI Industries N/A N/A N/A $4.80 22.45
American Outdoor Brands Corporation $825.26 million 0.96 $204.58 million $1.60 9.17

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

Dividends

LCI Industries pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. American Outdoor Brands Corporation does not pay a dividend. LCI Industries pays out 41.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

93.6% of LCI Industries shares are owned by institutional investors. Comparatively, 72.5% of American Outdoor Brands Corporation shares are owned by institutional investors. 3.8% of LCI Industries shares are owned by company insiders. Comparatively, 2.3% of American Outdoor Brands Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

LCI Industries has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
LCI Industries 7.33% 26.74% 18.11%
American Outdoor Brands Corporation 10.96% 27.91% 14.47%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LCI Industries and American Outdoor Brands Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 0 0 2 0 3.00
American Outdoor Brands Corporation 0 5 5 0 2.50

LCI Industries presently has a consensus price target of $120.00, suggesting a potential upside of 11.37%. American Outdoor Brands Corporation has a consensus price target of $19.35, suggesting a potential upside of 31.90%. Given American Outdoor Brands Corporation’s higher probable upside, analysts plainly believe American Outdoor Brands Corporation is more favorable than LCI Industries.

Summary

LCI Industries beats American Outdoor Brands Corporation on 7 of the 13 factors compared between the two stocks.

LCI Industries Company Profile

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

American Outdoor Brands Corporation Company Profile

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.

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