Academy Sports and Outdoors (NASDAQ:ASO – Get Free Report) and American Outdoor Brands (NASDAQ:AOUT – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Risk & Volatility
Academy Sports and Outdoors has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
Profitability
This table compares Academy Sports and Outdoors and American Outdoor Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Academy Sports and Outdoors | 6.22% | 17.88% | 7.05% |
| American Outdoor Brands | -4.78% | 0.62% | 0.44% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Academy Sports and Outdoors | 0 | 11 | 5 | 0 | 2.31 |
| American Outdoor Brands | 2 | 0 | 2 | 0 | 2.00 |
Academy Sports and Outdoors presently has a consensus target price of $57.36, indicating a potential downside of 2.90%. American Outdoor Brands has a consensus target price of $12.50, indicating a potential upside of 40.45%. Given American Outdoor Brands’ higher possible upside, analysts plainly believe American Outdoor Brands is more favorable than Academy Sports and Outdoors.
Earnings & Valuation
This table compares Academy Sports and Outdoors and American Outdoor Brands”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Academy Sports and Outdoors | $6.05 billion | 0.63 | $376.77 million | $5.56 | 10.62 |
| American Outdoor Brands | $222.32 million | 0.50 | -$80,000.00 | ($0.78) | -11.41 |
Academy Sports and Outdoors has higher revenue and earnings than American Outdoor Brands. American Outdoor Brands is trading at a lower price-to-earnings ratio than Academy Sports and Outdoors, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
49.9% of American Outdoor Brands shares are owned by institutional investors. 3.6% of Academy Sports and Outdoors shares are owned by insiders. Comparatively, 5.3% of American Outdoor Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Academy Sports and Outdoors beats American Outdoor Brands on 11 of the 14 factors compared between the two stocks.
About Academy Sports and Outdoors
Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.
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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