Head-To-Head Contrast: AeroVironment (NASDAQ:AVAV) & Outdoor (NASDAQ:POWW)

AeroVironment (NASDAQ:AVAV) and Outdoor (NASDAQ:POWW) are both aerospace companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

86.4% of AeroVironment shares are owned by institutional investors. Comparatively, 26.4% of Outdoor shares are owned by institutional investors. 0.8% of AeroVironment shares are owned by insiders. Comparatively, 25.0% of Outdoor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares AeroVironment and Outdoor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AeroVironment	$820.63 million	14.71	$43.62 million	($0.64)	-377.83
Outdoor	$49.40 million	3.79	-$130.83 million	($0.46)	-3.48

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for AeroVironment and Outdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AeroVironment	0	0	15	3	3.17
Outdoor	0	2	1	0	2.33

AeroVironment currently has a consensus price target of $292.33, suggesting a potential upside of 20.89%. Outdoor has a consensus price target of $1.75, suggesting a potential upside of 9.37%. Given AeroVironment’s stronger consensus rating and higher probable upside, analysts plainly believe AeroVironment is more favorable than Outdoor.

Profitability

This table compares AeroVironment and Outdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AeroVironment	-4.14%	4.67%	3.73%
Outdoor	-38.60%	-18.60%	-15.41%

Volatility & Risk

AeroVironment has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Summary

AeroVironment beats Outdoor on 11 of the 15 factors compared between the two stocks.

About AeroVironment

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

About Outdoor

AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.