Amer Sports (NYSE:AS) & Shimano (OTCMKTS:SMNNY) Critical Comparison

Amer Sports (NYSE:AS) and Shimano (OTCMKTS:SMNNY) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Risk & Volatility

Amer Sports has a beta of 2.8, meaning that its share price is 180% more volatile than the S&P 500. Comparatively, Shimano has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Valuation and Earnings

This table compares Amer Sports and Shimano”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amer Sports	$6.57 billion	2.69	$427.40 million	$0.75	42.48
Shimano	$3.12 billion	2.80	$227.74 million	$0.24	42.04

Amer Sports has higher revenue and earnings than Shimano. Shimano is trading at a lower price-to-earnings ratio than Amer Sports, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amer Sports and Shimano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amer Sports	6.51%	9.74%	5.80%
Shimano	7.12%	2.86%	2.64%

Institutional & Insider Ownership

40.3% of Amer Sports shares are held by institutional investors. Comparatively, 0.0% of Shimano shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Amer Sports and Shimano, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amer Sports	0	2	15	2	3.00
Shimano	0	0	0	0	0.00

Amer Sports presently has a consensus target price of $47.12, indicating a potential upside of 47.91%. Given Amer Sports’ stronger consensus rating and higher possible upside, research analysts clearly believe Amer Sports is more favorable than Shimano.

Summary

Amer Sports beats Shimano on 12 of the 14 factors compared between the two stocks.

About Amer Sports

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.