Head-To-Head Analysis: Outdoor (NASDAQ:POWW) & Caleres (NYSE:CAL)

Caleres (NYSE:CAL) and Outdoor (NASDAQ:POWW) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Caleres and Outdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caleres	1	2	0	0	1.67
Outdoor	0	1	2	1	3.00

Outdoor has a consensus price target of $2.62, suggesting a potential upside of 23.24%. Given Outdoor’s stronger consensus rating and higher possible upside, analysts clearly believe Outdoor is more favorable than Caleres.

Insider and Institutional Ownership

98.4% of Caleres shares are held by institutional investors. Comparatively, 26.4% of Outdoor shares are held by institutional investors. 3.1% of Caleres shares are held by company insiders. Comparatively, 28.1% of Outdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Caleres has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Caleres and Outdoor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caleres	$2.76 billion	0.15	-$6.69 million	($0.01)	-1,251.00
Outdoor	$51.12 million	4.84	-$3.54 million	$0.03	71.00

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

Profitability

This table compares Caleres and Outdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caleres	1.85%	7.84%	2.42%
Outdoor	12.08%	1.90%	1.67%

Summary

Outdoor beats Caleres on 11 of the 15 factors compared between the two stocks.

About Caleres

Caleres, Inc. engages in the retail and wholesale of footwear business in the United States, Canada, East Asia, and internationally. It operates through Famous Footwear and Brand Portfolio segments. The company offers licensed, branded, and private-label athletic, casual, and dress footwear products. The company provides brand name athletic, casual, and dress shoes, including Nike, Skechers, adidas, Vans, Crocs, Converse, Puma, Birkenstock, New Balance, Under Armour, Dr. Martens, Asics, Timberland, Bearpaw, Skechers, HeyDude, Franco Sarto, Rykä, Vince, Bzees, Veronica Beard, and Zodiac brands, as well as company-owned and licensed brands, such as LifeStride, Dr. Scholl’s Shoes, Blowfish Malibu, and Naturalizer. The company also operates naturalizer.com, naturalizer.ca, vionicshoes.com, samedelman.com, samedelman.co.uk, allenedmonds.com, allenedmonds.ca, drschollsshoes.com, lifestride.com, francosarto.com, ryka.com, bzees.com, and zodiacshoes.com, as well as Vince.com, blowfishshoes.com, and veronicabeard.com websites. In addition, it designs, sources, manufactures, and markets footwear to retail stores, such as online retailers, national chains, department stores, mass merchandisers, and independent retailers. Further, the company wholesales men’s footwear, apparel, leather goods, and accessories under the Allen Edmonds brand; footwear for women under LifeStride brand; Italian footwear Franco Sarto brand; athletic footwear for women under the Rykä brand; women’s shoe collection under the Vince brand; women’s footwear under the Bzees brand; and women’s footwear collection under Veronica Beard brand. The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. Caleres, Inc. was founded in 1878 and is headquartered in Saint Louis, Missouri.

About Outdoor

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.