Critical Survey: Shimano (OTCMKTS:SMNNY) vs. American Outdoor Brands (NASDAQ:AOUT)

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

Institutional and Insider Ownership

49.9% of American Outdoor Brands shares are owned by institutional investors. Comparatively, 0.0% of Shimano shares are owned by institutional investors. 5.3% of American Outdoor Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

American Outdoor Brands has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Shimano has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for American Outdoor Brands and Shimano, 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
Shimano	0	0	0	0	0.00

American Outdoor Brands presently has a consensus price target of $12.50, suggesting a potential upside of 44.01%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, analysts clearly believe American Outdoor Brands is more favorable than Shimano.

Profitability

This table compares American Outdoor Brands and Shimano’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%
Shimano	7.12%	2.91%	2.67%

Valuation & Earnings

This table compares American Outdoor Brands and Shimano”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Outdoor Brands	$222.32 million	0.49	-$80,000.00	($0.45)	-19.29
Shimano	$3.12 billion	3.05	$503.78 million	$0.24	45.88

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

Summary

Shimano beats American Outdoor Brands 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 Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.