Head-To-Head Analysis: Outdoor (NASDAQ:POWW) & American Defense Systems (OTCMKTS:ADFS)

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

Profitability

This table compares Outdoor and American Defense Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outdoor	N/A	-18.60%	-15.41%
American Defense Systems	N/A	N/A	N/A

Institutional and Insider Ownership

26.4% of Outdoor shares are held by institutional investors. 25.0% of Outdoor shares are held by insiders. Comparatively, 19.3% of American Defense Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Outdoor and American Defense Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	1	1	1	0	2.00
American Defense Systems	0	0	0	0	0.00

Outdoor currently has a consensus price target of $2.00, indicating a potential upside of 25.00%. Given Outdoor’s stronger consensus rating and higher probable upside, analysts plainly believe Outdoor is more favorable than American Defense Systems.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$49.40 million	3.79	-$130.83 million	($0.32)	-5.00
American Defense Systems	N/A	N/A	N/A	N/A	N/A

American Defense Systems has lower revenue, but higher earnings than Outdoor.

Volatility & Risk

Outdoor has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, American Defense Systems has a beta of 8.37, suggesting that its share price is 737% more volatile than the S&P 500.

Summary

Outdoor beats American Defense Systems on 6 of the 9 factors compared between the two stocks.

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.

About American Defense Systems

American Defense Systems, Inc., together with its subsidiaries, engages in the design and supply of transparent and opaque armor solutions for military and commercial applications. It offers crew protection kits that provide armor protection of operator compartments; VistaSteel transparent armor, a laminated glass that provides defensive barrier to protect against firearms, physical attack, and explosive blasts; VistaSteel opaque armors; lightweight armor systems; and VistaGuard windows, which are forced entry blast resistant windows, window frames, and transparent armor assemblies used to mitigate forced entry, ballistic, and terrorist threats in high visibility targets. The company also provides portable transparent ballistic shield, a bullet-resistant transparent mobile shield; heated ballistic ship windows; and hardware products, such as hinges, rotary and slam latches, combat locks, and egress windows. Its armor solutions for construction equipment, and tactical and non-tactical transport vehicles are designed to protect their occupants from landmines, hostile fire, and improvised explosive devices. In addition, the company offers engineering and consulting services; and develops and installs detention and security hardware, entry control and monitoring systems, intrusion detection systems, and security glass. Its products are used in transport and fighting vehicles, construction equipment, sea craft, and various fixed structures, which require ballistic and blast attenuation. American Defense Systems, Inc. serves various branches of the United States military, including the United States Department of Defense; and other United States government, law enforcement, and correctional agencies, as well as private sector customers. The company was founded in 1994 and is headquartered in Lillington, North Carolina.