American Outdoor Brands (NASDAQ:AOUT – Get Free Report) and Mastercraft Boat (NASDAQ:MCFT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares American Outdoor Brands and Mastercraft Boat’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Outdoor Brands | -0.03% | 4.13% | 2.95% |
| Mastercraft Boat | -2.46% | 3.34% | 2.11% |
Institutional & Insider Ownership
49.9% of American Outdoor Brands shares are owned by institutional investors. Comparatively, 97.6% of Mastercraft Boat shares are owned by institutional investors. 4.3% of American Outdoor Brands shares are owned by company insiders. Comparatively, 4.0% of Mastercraft Boat shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Outdoor Brands | 0 | 0 | 2 | 0 | 3.00 |
| Mastercraft Boat | 0 | 5 | 2 | 0 | 2.29 |
American Outdoor Brands presently has a consensus price target of $15.00, suggesting a potential upside of 44.37%. Mastercraft Boat has a consensus price target of $20.00, suggesting a potential upside of 6.04%. Given American Outdoor Brands’ stronger consensus rating and higher probable upside, equities research analysts clearly believe American Outdoor Brands is more favorable than Mastercraft Boat.
Valuation & Earnings
This table compares American Outdoor Brands and Mastercraft Boat”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Outdoor Brands | $222.32 million | 0.59 | -$12.25 million | ($0.35) | -29.69 |
| Mastercraft Boat | $366.59 million | 0.85 | $7.80 million | ($0.39) | -48.36 |
Mastercraft Boat has higher revenue and earnings than American Outdoor Brands. Mastercraft Boat is trading at a lower price-to-earnings ratio than American Outdoor Brands, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
American Outdoor Brands has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, Mastercraft Boat has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Summary
American Outdoor Brands beats Mastercraft Boat on 7 of the 13 factors compared between the two stocks.
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.
About Mastercraft Boat
MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.
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