Reviewing Ducommun (NYSE:DCO) & Outdoor (NASDAQ:POWW)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ducommun and Outdoor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ducommun	0	2	5	0	2.71
Outdoor	1	1	2	0	2.25

Ducommun currently has a consensus price target of $140.25, indicating a potential upside of 13.04%. Outdoor has a consensus price target of $2.40, indicating a potential upside of 20.00%. Given Outdoor’s higher possible upside, analysts clearly believe Outdoor is more favorable than Ducommun.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ducommun	-4.11%	8.47%	4.89%
Outdoor	-161.16%	-8.65%	-7.16%

Earnings & Valuation

This table compares Ducommun and Outdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ducommun	$824.73 million	2.25	-$33.94 million	($2.31)	-53.71
Outdoor	$49.40 million	4.75	-$130.83 million	$0.04	50.00

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

Risk and Volatility

Ducommun has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Insider & Institutional Ownership

92.2% of Ducommun shares are owned by institutional investors. Comparatively, 26.4% of Outdoor shares are owned by institutional investors. 5.0% of Ducommun shares are owned by company insiders. Comparatively, 25.0% of Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Ducommun beats Outdoor on 8 of the 14 factors compared between the two stocks.

About Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.

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.