American Outdoor Brands Corporation (NASDAQ: AOBC) and Vista Outdoor (NYSE:VSTO) are both small-cap aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

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, Vista Outdoor has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500.

Institutional and Insider Ownership

71.3% of American Outdoor Brands Corporation shares are held by institutional investors. 2.3% of American Outdoor Brands Corporation shares are held by insiders. Comparatively, 1.5% of Vista Outdoor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Outdoor Brands Corporation $825.26 million 0.95 $204.58 million $1.60 9.06
Vista Outdoor $2.49 billion 0.50 $280.08 million ($4.91) -4.46

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

Profitability

This table compares American Outdoor Brands Corporation and Vista Outdoor’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%
Vista Outdoor -11.55% 7.02% 3.07%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Outdoor Brands Corporation 0 5 5 0 2.50
Vista Outdoor 0 6 5 0 2.45

American Outdoor Brands Corporation presently has a consensus target price of $19.35, suggesting a potential upside of 33.45%. Vista Outdoor has a consensus target price of $28.45, suggesting a potential upside of 30.03%. Given American Outdoor Brands Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe American Outdoor Brands Corporation is more favorable than Vista Outdoor.

Summary

American Outdoor Brands Corporation beats Vista Outdoor on 10 of the 13 factors compared between the two stocks.

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.

Vista Outdoor Company Profile

Vista Outdoor Inc. is a designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets. The Company operates through two segments: Shooting Sports and Outdoor Products. Its Shooting Sports segment designs, develops, produces and sources ammunition and firearms for the hunting and sport shooting enthusiast markets, as well as ammunition for local law enforcement, the United States Government and international markets. Its Outdoor Products segment product lines include archery/hunting accessories, global eyewear and sport protection, golf, hydration products, optics, shooting accessories, tactical products and water sports. The Company serves the outdoor sports and recreation markets through a diverse portfolio of over 40 brands. It serves a range of end consumers, including outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals. It offers cooking solutions through Camp Chef brand.

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