Critical Analysis: Outdoor (POWW) versus The Competition

Outdoor (NASDAQ:POWW) is one of 46 public companies in the “AEROSP/DEF EQ” industry, but how does it contrast to its competitors? We will compare Outdoor to related businesses based on the strength of its analyst recommendations, institutional ownership, risk, earnings, dividends, profitability and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Outdoor and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	0	1	0	0	2.00
Outdoor Competitors	347	1806	2748	93	2.52

Outdoor presently has a consensus price target of $1.50, suggesting a potential upside of 9.49%. As a group, “AEROSP/DEF EQ” companies have a potential upside of 0.90%. Given Outdoor’s higher probable upside, research analysts plainly believe Outdoor is more favorable than its competitors.

Volatility and Risk

Outdoor has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Outdoor’s competitors have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Outdoor and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Outdoor	$49.40 million	-$16.59 million	-2.36
Outdoor Competitors	$3.52 billion	$275.42 million	73.04

Outdoor’s competitors have higher revenue and earnings than Outdoor. Outdoor is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Outdoor and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outdoor	-49.83%	-16.17%	-13.55%
Outdoor Competitors	-42.63%	-0.30%	3.35%

Institutional & Insider Ownership

26.4% of Outdoor shares are owned by institutional investors. Comparatively, 65.1% of shares of all “AEROSP/DEF EQ” companies are owned by institutional investors. 25.0% of Outdoor shares are owned by insiders. Comparatively, 8.7% of shares of all “AEROSP/DEF EQ” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Outdoor competitors beat Outdoor on 10 of the 13 factors compared.

Outdoor Company Profile

AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.