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

Valuation & Earnings

This table compares Brunswick Corporation and American Outdoor Brands Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brunswick Corporation $4.69 billion 1.12 $602.40 million $3.15 18.77
American Outdoor Brands Corporation $825.26 million 0.97 $204.58 million $1.60 9.26

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

Dividends

Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.1%. American Outdoor Brands Corporation does not pay a dividend. Brunswick Corporation pays out 21.0% of its earnings in the form of a dividend. Brunswick Corporation has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

94.0% of Brunswick Corporation shares are owned by institutional investors. Comparatively, 72.5% of American Outdoor Brands Corporation shares are owned by institutional investors. 1.0% of Brunswick Corporation shares are owned by insiders. Comparatively, 2.3% of American Outdoor Brands Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Brunswick Corporation has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Brunswick Corporation 6.13% 23.35% 10.44%
American Outdoor Brands Corporation 10.96% 27.91% 14.47%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Brunswick Corporation and American Outdoor Brands Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick Corporation 0 3 11 0 2.79
American Outdoor Brands Corporation 0 5 5 0 2.50

Brunswick Corporation currently has a consensus target price of $65.54, suggesting a potential upside of 10.86%. American Outdoor Brands Corporation has a consensus target price of $19.35, suggesting a potential upside of 30.57%. Given American Outdoor Brands Corporation’s higher probable upside, analysts plainly believe American Outdoor Brands Corporation is more favorable than Brunswick Corporation.

Summary

Brunswick Corporation beats American Outdoor Brands Corporation on 11 of the 17 factors compared between the two stocks.

Brunswick Corporation Company Profile

Brunswick Corporation is a designer, manufacturer and marketer of recreation products. The Company operates through three segments: Marine Engine, Boat and Fitness. The Company’s product includes marine engines, boats, fitness equipment and active recreation products. The Company’s engine-related products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems; and marine parts and accessories. Its boat offerings include: fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; utility boats; deck boats; inflatable boats; and heavy-gauge aluminum boats. Its fitness products include cardiovascular and strength training equipment for both the commercial and consumer markets. It also sells products for active aging, rehabilitation, productive well-being, a complete line of billiards tables and other game room tables and accessories.

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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