Winnebago Industries (NYSE: WGO) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both small-cap construction 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.

Institutional and Insider Ownership

85.0% of Winnebago Industries shares are held by institutional investors. Comparatively, 71.3% of American Outdoor Brands Corporation shares are held by institutional investors. 1.5% of Winnebago Industries shares are held by insiders. Comparatively, 2.3% of American Outdoor Brands 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Winnebago Industries 0 3 5 0 2.63
American Outdoor Brands Corporation 0 5 5 0 2.50

Winnebago Industries currently has a consensus target price of $43.33, suggesting a potential downside of 10.56%. American Outdoor Brands Corporation has a consensus target price of $19.35, suggesting a potential upside of 33.26%. Given American Outdoor Brands Corporation’s higher possible upside, analysts clearly believe American Outdoor Brands Corporation is more favorable than Winnebago Industries.

Volatility & Risk

Winnebago Industries has a beta of 1.99, suggesting that its share price is 99% 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.

Dividends

Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. American Outdoor Brands Corporation does not pay a dividend. Winnebago Industries pays out 17.4% of its earnings in the form of a dividend. American Outdoor Brands Corporation has increased its dividend for 2 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Winnebago Industries 4.61% 21.92% 10.18%
American Outdoor Brands Corporation 10.96% 27.91% 14.47%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Winnebago Industries $1.36 billion 1.13 $115.70 million $2.30 21.07
American Outdoor Brands Corporation $825.26 million 0.95 $204.58 million $1.60 9.08

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

About Winnebago Industries

Winnebago Industries, Inc. is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The Company offers products under categories, which include motorhomes, towables and other manufactured products. The Company produces all of its motorhomes in vertically integrated manufacturing facilities in Iowa and it produces all travel trailer and fifth wheel trailers in Indiana. The Company operates under the brand, Winnebago. The Company distributes its products primarily through independent dealers throughout the United States and Canada, who then retail the products to the end consumer.

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.

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