Financial Analysis: American Outdoor Brands (NASDAQ:AOUT) versus Wrap Technologies (NASDAQ:WRAP)

American Outdoor Brands (NASDAQ:AOUT) and Wrap Technologies (NASDAQ:WRAP) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares American Outdoor Brands and Wrap Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Outdoor Brands N/A N/A N/A
Wrap Technologies -326.52% -36.22% -34.27%

Analyst Ratings

This is a summary of current recommendations for American Outdoor Brands and Wrap Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Outdoor Brands 0 0 6 0 3.00
Wrap Technologies 0 0 2 0 3.00

American Outdoor Brands currently has a consensus target price of $28.33, indicating a potential downside of 10.51%. Wrap Technologies has a consensus target price of $18.75, indicating a potential upside of 124.28%. Given Wrap Technologies’ higher possible upside, analysts plainly believe Wrap Technologies is more favorable than American Outdoor Brands.

Institutional & Insider Ownership

66.1% of American Outdoor Brands shares are owned by institutional investors. Comparatively, 14.1% of Wrap Technologies shares are owned by institutional investors. 54.5% of Wrap Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares American Outdoor Brands and Wrap Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Outdoor Brands N/A N/A N/A N/A N/A
Wrap Technologies $3.94 million 80.52 -$12.58 million ($0.37) -22.59

American Outdoor Brands has higher earnings, but lower revenue than Wrap Technologies.

Summary

American Outdoor Brands beats Wrap Technologies on 5 of the 8 factors compared between the two stocks.

About American Outdoor Brands

American Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. The company offers hunting, fishing, camping, shooting, and personal security and defense products. Its products include shooting supplies, rests, vaults, and other related accessories; premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; electro-optical devices comprising hunting optics, firearm aiming devices, flashlights, and laser grips; reloading, gunsmithing, and firearm cleaning supplies; and survival, camping, and emergency preparedness products. The company sells its products through e-commerce and traditional distribution channels under the Marksman, Defender, Harvester, and Adventure brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company develops BolaWrap 100, a hand-held remote restraint device that discharges an eight-foot bola style Kevlar tether to entangle a subject at a range of 10-25 feet. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 2016 and is headquartered in Tempe, Arizona.

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