Head-To-Head Analysis: Kaman Corporation (KAMN) vs. American Outdoor Brands Corporation (AOBC)

Kaman Corporation (NYSE: KAMN) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both small-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitabiliy.

Risk & Volatility

Kaman Corporation has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Dividends

Kaman Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. American Outdoor Brands Corporation does not pay a dividend. Kaman Corporation pays out 40.8% of its earnings in the form of a dividend. Kaman Corporation has raised its dividend for 2 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Kaman Corporation 3.09% 10.18% 4.03%
American Outdoor Brands Corporation 14.88% 41.56% 21.78%

Valuation & Earnings

This table compares Kaman Corporation and American Outdoor Brands Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kaman Corporation $1.79 billion 0.77 $164.34 million $1.96 25.89
American Outdoor Brands Corporation $895.12 million 1.52 $263.29 million $2.34 10.29

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

Institutional and Insider Ownership

99.4% of Kaman Corporation shares are held by institutional investors. Comparatively, 69.0% of American Outdoor Brands Corporation shares are held by institutional investors. 2.4% of Kaman Corporation shares are held by company insiders. Comparatively, 1.9% of American Outdoor Brands Corporation 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Kaman Corporation and American Outdoor Brands Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kaman Corporation 0 4 0 0 2.00
American Outdoor Brands Corporation 1 5 2 0 2.13

Kaman Corporation presently has a consensus target price of $55.00, suggesting a potential upside of 8.40%. American Outdoor Brands Corporation has a consensus target price of $22.38, suggesting a potential downside of 7.04%. Given Kaman Corporation’s higher possible upside, equities analysts clearly believe Kaman Corporation is more favorable than American Outdoor Brands Corporation.

Summary

American Outdoor Brands Corporation beats Kaman Corporation on 9 of the 17 factors compared between the two stocks.

Kaman Corporation Company Profile

Kaman Corporation conducts business in the aerospace and distribution markets. The Company operates through two segments: Distribution and Aerospace. The Company’s brands include KAflex, KAron and K-MAX. Distribution segment is a power transmission, motion control, and fluid power industrial distributor with operations throughout the United States. Distribution segment conducts business in the mechanical power transmission and bearings, electrical, automation and control, and fluid power product platforms and provides total solutions from system design and integration to machine parts and services to the national manufacturing industry. Aerospace segment produces and markets aircraft bearings and components; super precision, miniature ball bearings; metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and safe and arming solutions for missile and bomb systems for the United States and allied militaries.

American Outdoor Brands Corporation Company Profile

American Outdoor Brands Corporation, formerly Smith & Wesson Holding Corporation, is a manufacturer of firearms and a provider of accessory products for the shooting, hunting and outdoor enthusiast. The Company operates through two segments. The Firearms segment manufactures handgun and long gun products sold under the Smith & Wesson, M&P and Thompson/Center Arms brands, as well as providing forging, machining and precision plastic injection molding services. The Outdoor Products & Accessories segment provides shooting, hunting and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems and tactical lighting products. Brands in Outdoor Products & Accessories include Crimson Trace, Caldwell Shooting Supplies, Wheeler Engineering, Lockdown Vault Accessories, BOG POD and Golden Rod Moisture Control, as well as knives and specialty tools under Schrade, Old Timer, Uncle Henry and Imperial.

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