Head-To-Head Review: American Outdoor Brands (NASDAQ:AOUT) and Marine Products (NYSE:MPX)

Marine Products (NYSE:MPX) and American Outdoor Brands (NASDAQ:AOUT) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares Marine Products and American Outdoor Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marine Products	5.84%	10.44%	7.52%
American Outdoor Brands	-2.69%	1.25%	0.89%

Risk and Volatility

Marine Products has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Insider and Institutional Ownership

13.9% of Marine Products shares are held by institutional investors. Comparatively, 49.9% of American Outdoor Brands shares are held by institutional investors. 75.2% of Marine Products shares are held by insiders. Comparatively, 5.3% of American Outdoor Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Marine Products and American Outdoor Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marine Products	1	0	0	0	1.00
American Outdoor Brands	2	0	2	0	2.00

American Outdoor Brands has a consensus target price of $12.50, suggesting a potential upside of 52.81%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, analysts plainly believe American Outdoor Brands is more favorable than Marine Products.

Earnings and Valuation

This table compares Marine Products and American Outdoor Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marine Products	$236.55 million	1.33	$17.85 million	$0.37	24.32
American Outdoor Brands	$222.32 million	0.46	-$80,000.00	($0.45)	-18.18

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

Summary

Marine Products beats American Outdoor Brands on 10 of the 14 factors compared between the two stocks.

About Marine Products

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sport boat and sport fishing boat markets worldwide. The company offers Chaparral sterndrive pleasure boats, including SSi Sport Boats, SSX Sport Boats, and the Surf Series; Chaparral outboard pleasure boats, which include OSX Luxury Sportboats and SSi outboard models; and Robalo outboard sport fishing boats. It also provides center and dual consoles, and Cayman Bay Boats under the Robalo brand name. The company sells its products to a network of domestic and international independent authorized dealers. Marine Products Corporation was founded in 1965 and is based in Atlanta, Georgia. Marine Products Corporation operates as a subsidiary of LOR, Inc.

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.