Comparing American Outdoor Brands (NASDAQ:AOUT) & Massimo Group (NASDAQ:MAMO)

American Outdoor Brands (NASDAQ:AOUT) and Massimo Group (NASDAQ:MAMO) 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 valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares American Outdoor Brands and Massimo Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Outdoor Brands	$222.32 million	0.50	-$80,000.00	($0.45)	-19.67
Massimo Group	$111.21 million	0.37	$1.76 million	($0.02)	-49.50

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

Risk & Volatility

American Outdoor Brands has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Massimo Group has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Outdoor Brands	-2.69%	1.25%	0.89%
Massimo Group	-1.17%	-3.96%	-1.72%

Insider and Institutional Ownership

49.9% of American Outdoor Brands shares are owned by institutional investors. 5.3% of American Outdoor Brands shares are owned by company insiders. Comparatively, 78.0% of Massimo Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for American Outdoor Brands and Massimo Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Outdoor Brands	2	0	2	0	2.00
Massimo Group	1	0	0	0	1.00

American Outdoor Brands presently has a consensus price target of $12.50, indicating a potential upside of 41.24%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, equities analysts clearly believe American Outdoor Brands is more favorable than Massimo Group.

Summary

American Outdoor Brands beats Massimo Group on 9 of the 14 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. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. In addition, it offers electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. The company sells its products through e-commerce and traditional distribution channels under the Adventurer, Harvester, Marksman, and Defender brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.

About Massimo Group

Massimo Group, through its subsidiaries, engages in the manufacturing and sale of utility terrain vehicles, all-terrain vehicles, and pontoon and tritoon boats. The company also offers motorcycles, scooters, golf carts, and go karts and balance bikes, as well as snow equipment. In addition, it provides accessories, including EV chargers, electric coolers, power stations, and portable solar panels. The company sells its products through a network of dealerships, distributors, and chain stores, as well as the e-commerce marketplace. Massimo Group was founded in 2009 and is based in Garland, Texas.