Leatt (OTCMKTS:LEAT – Get Free Report) and American Outdoor Brands (NASDAQ:AOUT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
0.6% of Leatt shares are held by institutional investors. Comparatively, 49.9% of American Outdoor Brands shares are held by institutional investors. 80.0% of Leatt shares are held by company insiders. Comparatively, 5.3% of American Outdoor Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Leatt has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Leatt | 0 | 0 | 0 | 0 | 0.00 |
| American Outdoor Brands | 2 | 0 | 2 | 0 | 2.00 |
American Outdoor Brands has a consensus price target of $12.50, indicating a potential upside of 41.08%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, analysts plainly believe American Outdoor Brands is more favorable than Leatt.
Valuation and Earnings
This table compares Leatt and American Outdoor Brands”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Leatt | $44.03 million | 1.30 | -$2.20 million | $0.36 | 25.58 |
| American Outdoor Brands | $222.32 million | 0.50 | -$80,000.00 | ($0.78) | -11.36 |
American Outdoor Brands has higher revenue and earnings than Leatt. American Outdoor Brands is trading at a lower price-to-earnings ratio than Leatt, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Leatt and American Outdoor Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Leatt | 4.12% | 5.87% | 4.97% |
| American Outdoor Brands | -4.78% | 0.62% | 0.44% |
Summary
Leatt beats American Outdoor Brands on 8 of the 14 factors compared between the two stocks.
About Leatt
Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor products, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. In addition, the company offers other products, parts, and accessories, such as goggles; toolbelt, duffel, gear, helmet bags, hats, and hydration kits; casual clothing, caps, and sunglasses; and apparel that comprises suits, jackets, jerseys, pants, shorts, socks, and gloves, as well as aftermarket support products. Further, it acts as the original equipment manufacturer for personal protective equipment sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs. It sells its products to customers through a network of distributors and retailers; and direct to end consumers through digital channels and online store at leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. The company was founded in 2001 and is headquartered in Durbanville, South Africa.
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.
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