American Outdoor Brands Corporation (NASDAQ: AOBC) and W.W. Grainger (NYSE:GWW) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitabiliy, risk and dividends.
This is a summary of recent ratings and target prices for American Outdoor Brands Corporation and W.W. Grainger, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Outdoor Brands Corporation||1||5||2||0||2.13|
American Outdoor Brands Corporation presently has a consensus price target of $22.38, indicating a potential downside of 7.04%. W.W. Grainger has a consensus price target of $189.60, indicating a potential upside of 5.15%. Given W.W. Grainger’s higher possible upside, analysts plainly believe W.W. Grainger is more favorable than American Outdoor Brands Corporation.
Valuation & Earnings
This table compares American Outdoor Brands Corporation and W.W. Grainger’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Outdoor Brands Corporation||$895.12 million||1.52||$263.29 million||$2.34||10.29|
|W.W. Grainger||$10.17 billion||1.04||$1.43 billion||$9.78||18.44|
W.W. Grainger has higher revenue and earnings than American Outdoor Brands Corporation. American Outdoor Brands Corporation is trading at a lower price-to-earnings ratio than W.W. Grainger, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
69.0% of American Outdoor Brands Corporation shares are held by institutional investors. Comparatively, 80.6% of W.W. Grainger shares are held by institutional investors. 1.9% of American Outdoor Brands Corporation shares are held by company insiders. Comparatively, 9.6% of W.W. Grainger shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
W.W. Grainger pays an annual dividend of $5.12 per share and has a dividend yield of 2.8%. American Outdoor Brands Corporation does not pay a dividend. W.W. Grainger pays out 52.4% of its earnings in the form of a dividend. W.W. Grainger has raised its dividend for 45 consecutive years.
This table compares American Outdoor Brands Corporation and W.W. Grainger’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Outdoor Brands Corporation||14.88%||41.56%||21.78%|
Risk and Volatility
American Outdoor Brands Corporation has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, W.W. Grainger has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
W.W. Grainger beats American Outdoor Brands Corporation on 10 of the 17 factors compared between the two stocks.
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.
W.W. Grainger Company Profile
W.W. Grainger, Inc. (Grainger) is a distributor of maintenance, repair and operating (MRO) supplies and other related products and services. The Company offers its products and services to businesses and institutions in the United States and Canada, with presence also in Europe, Asia and Latin America. The Company operates through two segments, which include the United States and Canada. The Company’s business support functions provide coordination and guidance in the areas of accounting and finance, business development, communications and investor relations, compensation and benefits, information systems, health and safety, global supply chain functions, human resources, risk management, internal audit, legal, real estate, security, tax and treasury. The Company’s other businesses also include Zoro Tools, Inc. (Zoro), the single channel online business in the United States, MonotaRO Co. (MonotaRO) in Japan, and operations in Europe, Asia and Latin America.
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