American Outdoor Brands (NASDAQ:AOUT) vs. Shimano (OTCMKTS:SMNNY) Head-To-Head Analysis

Shimano (OTCMKTS:SMNNY) and American Outdoor Brands (NASDAQ:AOUT) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimano	7.12%	2.91%	2.67%
American Outdoor Brands	-2.69%	1.25%	0.89%

Insider & Institutional Ownership

0.0% of Shimano shares are owned by institutional investors. Comparatively, 49.9% of American Outdoor Brands shares are owned by institutional investors. 5.3% of American Outdoor Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Shimano has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Shimano and American Outdoor Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimano	0	0	0	0	0.00
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 44.01%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, analysts clearly believe American Outdoor Brands is more favorable than Shimano.

Earnings and Valuation

This table compares Shimano and American Outdoor Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$3.12 billion	3.05	$227.37 million	$0.24	45.88
American Outdoor Brands	$222.32 million	0.49	-$80,000.00	($0.45)	-19.29

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

Summary

Shimano beats American Outdoor Brands on 9 of the 14 factors compared between the two stocks.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

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.