Critical Analysis: American Outdoor Brands Corporation (AOBC) versus Its Rivals

American Outdoor Brands Corporation (NASDAQ: AOBC) is one of 13 public companies in the “Recreational Products” industry, but how does it compare to its peers? We will compare American Outdoor Brands Corporation to related businesses based on the strength of its dividends, risk, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares American Outdoor Brands Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Outdoor Brands Corporation $825.26 million $204.58 million 8.89
American Outdoor Brands Corporation Competitors $2.17 billion $240.81 million 18.18

American Outdoor Brands Corporation’s peers have higher revenue and earnings than American Outdoor Brands Corporation. American Outdoor Brands Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

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, American Outdoor Brands Corporation’s peers have a beta of 1.08, suggesting that their average share price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American Outdoor Brands Corporation and its peers, 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
American Outdoor Brands Corporation Competitors 27 298 513 24 2.62

American Outdoor Brands Corporation currently has a consensus target price of $19.35, indicating a potential upside of 35.98%. As a group, “Recreational Products” companies have a potential upside of 1.49%. Given American Outdoor Brands Corporation’s higher possible upside, research analysts clearly believe American Outdoor Brands Corporation is more favorable than its peers.

Institutional & Insider Ownership

72.5% of American Outdoor Brands Corporation shares are owned by institutional investors. Comparatively, 88.6% of shares of all “Recreational Products” companies are owned by institutional investors. 2.3% of American Outdoor Brands Corporation shares are owned by insiders. Comparatively, 3.2% of shares of all “Recreational Products” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares American Outdoor Brands Corporation and its peers’ 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%
American Outdoor Brands Corporation Competitors 6.94% 23.08% 15.17%

Summary

American Outdoor Brands Corporation peers beat American Outdoor Brands Corporation on 10 of the 13 factors compared.

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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