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

Profitability

This table compares American Outdoor Brands Corporation and MarineMax’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%
MarineMax 2.24% 7.82% 3.89%

Analyst Ratings

This is a summary of recent ratings and recommmendations for American Outdoor Brands Corporation and MarineMax, 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
MarineMax 0 2 3 1 2.83

American Outdoor Brands Corporation currently has a consensus target price of $19.35, indicating a potential upside of 40.83%. MarineMax has a consensus target price of $21.67, indicating a potential upside of 7.53%. Given American Outdoor Brands Corporation’s higher probable upside, equities research analysts clearly believe American Outdoor Brands Corporation is more favorable than MarineMax.

Institutional & Insider Ownership

70.7% of American Outdoor Brands Corporation shares are owned by institutional investors. Comparatively, 90.6% of MarineMax shares are owned by institutional investors. 2.3% of American Outdoor Brands Corporation shares are owned by company insiders. Comparatively, 5.0% of MarineMax shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

American Outdoor Brands Corporation has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500. Comparatively, MarineMax has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
American Outdoor Brands Corporation $903.19 million 0.82 $127.85 million $1.60 8.59
MarineMax $1.05 billion 0.45 $23.54 million $0.96 20.99

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

Summary

American Outdoor Brands Corporation beats MarineMax on 8 of the 15 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 MarineMax

MarineMax, Inc. is a recreational boat and yacht dealer in the United States. Through 56 retail locations in Alabama, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, and Texas, the Company sold new and used recreational boats, including pleasure and fishing boats, as of September 30, 2016. The Company also sells related marine products, including engines, trailers, parts and accessories. In addition, it provides repair, maintenance, and slip and storage services; arranges related boat financing, insurance, and extended service contracts; offers boat and yacht brokerage sales, and operates a yacht charter business. The Company primarily sells recreational boats, including pleasure boats and fishing boats. The Company offers marine engines and equipment and sells marine engines and propellers primarily to retail customers as replacements for their existing engines or propellers.

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