Dover Corporation (DOV) & American Outdoor Brands Corporation (AOBC) Critical Analysis
Dover Corporation (NYSE: DOV) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Volatility and Risk
Dover Corporation has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.
Earnings and Valuation
This table compares Dover Corporation and American Outdoor Brands Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dover Corporation||$7.29 billion||2.01||$1.22 billion||$3.99||23.58|
|American Outdoor Brands Corporation||$825.26 million||1.03||$204.58 million||$1.60||9.81|
Dover Corporation has higher revenue and earnings than American Outdoor Brands Corporation. American Outdoor Brands Corporation is trading at a lower price-to-earnings ratio than Dover Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.0% of Dover Corporation shares are held by institutional investors. Comparatively, 72.5% of American Outdoor Brands Corporation shares are held by institutional investors. 2.5% of Dover Corporation shares are held by insiders. Comparatively, 2.3% of American Outdoor Brands Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dover Corporation pays an annual dividend of $1.88 per share and has a dividend yield of 2.0%. American Outdoor Brands Corporation does not pay a dividend. Dover Corporation pays out 47.1% of its earnings in the form of a dividend. Dover Corporation has raised its dividend for 61 consecutive years.
This is a breakdown of current recommendations for Dover Corporation and American Outdoor Brands Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Outdoor Brands Corporation||0||5||5||0||2.50|
Dover Corporation currently has a consensus price target of $91.73, suggesting a potential downside of 2.49%. American Outdoor Brands Corporation has a consensus price target of $19.35, suggesting a potential upside of 23.25%. Given American Outdoor Brands Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe American Outdoor Brands Corporation is more favorable than Dover Corporation.
This table compares Dover Corporation and American Outdoor Brands Corporation’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%|
Dover Corporation beats American Outdoor Brands Corporation on 11 of the 17 factors compared between the two stocks.
About Dover Corporation
Dover Corporation is a diversified global manufacturer delivering equipment and components, specialty systems, consumable supplies, software and digital solutions and support services. The Company’s segments include Energy, Engineered Systems, Fluids and Refrigeration & Food Equipment. The Company’s Energy segment is a provider of solutions and services for production and processing of fuels around the world. Its Engineered Systems segment includes two platforms: Printing & Identification, and Industrials and is focused on the design, manufacture and service of critical equipment and components serving the fast-moving consumer goods, digital textile printing and industrial end markets. Its Fluids segment is focused on the safe handling of critical fluids across the retail fueling, chemical, and industrial end markets. The Refrigeration & Food Equipment segment is a provider of energy efficient equipment and systems serving the commercial refrigeration and food equipment end markets.
About American Outdoor Brands Corporation
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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