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

Volatility and Risk

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Outdoor Brands Corporation $903.19 million 0.79 $257.73 million $1.60 8.32
KLX $1.60 billion 1.51 $240.70 million $1.50 31.25

American Outdoor Brands Corporation has higher revenue, but lower earnings than KLX. 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%

Analyst Recommendations

This is a breakdown of recent ratings 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 7 3 0 2.30
KLX 0 2 3 0 2.60

American Outdoor Brands Corporation presently has a consensus target price of $19.00, indicating a potential upside of 42.75%. KLX has a consensus target price of $55.00, indicating a potential upside of 17.35%. Given American Outdoor Brands Corporation’s higher possible upside, research analysts plainly believe American Outdoor Brands Corporation is more favorable than KLX.

Insider & Institutional Ownership

72.6% of American Outdoor Brands Corporation shares are held by institutional investors. 2.3% of American Outdoor Brands Corporation shares are held by company insiders. Comparatively, 1.8% of KLX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

American Outdoor Brands Corporation beats KLX on 8 of the 13 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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