Comparing American Outdoor Brands (NASDAQ:AOUT) and Vision Marine Technologies (NASDAQ:VMAR)

Vision Marine Technologies (NASDAQ:VMAR) and American Outdoor Brands (NASDAQ:AOUT) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Valuation & Earnings

This table compares Vision Marine Technologies and American Outdoor Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vision Marine Technologies	$13.83 million	0.07	-$21.65 million	($281.54)	0.00
American Outdoor Brands	$222.32 million	0.47	-$80,000.00	($0.45)	-18.33

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

Institutional and Insider Ownership

53.8% of Vision Marine Technologies shares are owned by institutional investors. Comparatively, 49.9% of American Outdoor Brands shares are owned by institutional investors. 40.4% of Vision Marine Technologies shares are owned by company insiders. Comparatively, 5.3% of American Outdoor Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Vision Marine Technologies and American Outdoor Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vision Marine Technologies	-156.52%	-198.37%	-74.21%
American Outdoor Brands	-2.69%	1.25%	0.89%

Analyst Recommendations

This is a breakdown of current recommendations for Vision Marine Technologies and American Outdoor Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vision Marine Technologies	1	0	0	0	1.00
American Outdoor Brands	2	0	2	0	2.00

American Outdoor Brands has a consensus price target of $12.50, suggesting a potential upside of 51.52%. Given American Outdoor Brands’ stronger consensus rating and higher probable upside, analysts plainly believe American Outdoor Brands is more favorable than Vision Marine Technologies.

Volatility & Risk

Vision Marine Technologies has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Summary

American Outdoor Brands beats Vision Marine Technologies on 11 of the 14 factors compared between the two stocks.

About Vision Marine Technologies

Vision Marine Technologies Inc. designs, develops, manufactures, sells, and rents electric boats in Canada, the United States, and internationally. It offers e-motion electric powertrain technology; e-motion electric outboard powertrain system; electric boats; maintenance, repair, and customer support services; as well as manufactures customized boats. The company also provides its products through website and distributors. It serves original equipment manufacturers, retail customer, boat clubs, and boat rental operations. The company was formerly known as Riopel Marine Inc. and changed its name to Vision Marine Technologies Inc. in April 2020. Vision Marine Technologies Inc. was founded in 1995 and is headquartered in Boisbriand, Canada.

About American Outdoor Brands

American Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. In addition, it offers electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. The company sells its products through e-commerce and traditional distribution channels under the Adventurer, Harvester, Marksman, and Defender brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.