Analyzing American Outdoor Brands Corporation (AOBC) & KLX (KLXI)

American Outdoor Brands Corporation (NASDAQ: AOBC) and KLX (NASDAQ:KLXI) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Insider & Institutional Ownership

72.6% of American Outdoor Brands Corporation shares are owned by institutional investors. 2.3% of American Outdoor Brands Corporation shares are owned by company insiders. Comparatively, 1.8% of KLX shares are owned by company 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for American Outdoor Brands Corporation and KLX, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Outdoor Brands Corporation 0 6 4 0 2.40
KLX 0 2 3 0 2.60

American Outdoor Brands Corporation currently has a consensus price target of $19.00, suggesting a potential upside of 33.24%. KLX has a consensus price target of $55.00, suggesting a potential upside of 14.01%. Given American Outdoor Brands Corporation’s higher probable upside, analysts clearly believe American Outdoor Brands Corporation is more favorable than KLX.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Outdoor Brands Corporation $825.26 million 0.93 $204.58 million $1.60 8.91
KLX $1.60 billion 1.55 $240.70 million $1.50 32.16

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

Profitability

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

Net Margins Return on Equity Return on Assets
American Outdoor Brands Corporation 10.96% 27.91% 14.47%
KLX 4.83% 4.43% 2.66%

Risk and Volatility

American Outdoor Brands Corporation has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, KLX has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Summary

American Outdoor Brands Corporation beats KLX on 8 of the 14 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.

KLX Company Profile

KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.

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