American Outdoor Brands (NASDAQ: AOBC) and Thor Industries (NYSE:THO) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
This is a summary of current ratings and target prices for American Outdoor Brands and Thor Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Outdoor Brands||0||5||5||0||2.50|
American Outdoor Brands presently has a consensus price target of $19.35, indicating a potential upside of 45.71%. Thor Industries has a consensus price target of $122.55, indicating a potential downside of 10.60%. Given American Outdoor Brands’ higher probable upside, research analysts clearly believe American Outdoor Brands is more favorable than Thor Industries.
This table compares American Outdoor Brands and Thor Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Outdoor Brands||10.96%||27.91%||14.47%|
Institutional and Insider Ownership
68.2% of American Outdoor Brands shares are owned by institutional investors. Comparatively, 89.6% of Thor Industries shares are owned by institutional investors. 2.3% of American Outdoor Brands shares are owned by company insiders. Comparatively, 6.6% of Thor Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares American Outdoor Brands and Thor Industries’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|American Outdoor Brands||$903.19 million||0.79||$127.85 million||$1.59||8.35|
|Thor Industries||$7.25 billion||1.00||$374.25 million||$7.09||19.33|
Thor Industries has higher revenue and earnings than American Outdoor Brands. American Outdoor Brands is trading at a lower price-to-earnings ratio than Thor Industries, indicating that it is currently the more affordable of the two stocks.
Thor Industries pays an annual dividend of $1.48 per share and has a dividend yield of 1.1%. American Outdoor Brands does not pay a dividend. Thor Industries pays out 20.9% of its earnings in the form of a dividend. American Outdoor Brands has raised its dividend for 7 consecutive years.
Risk & Volatility
American Outdoor Brands has a beta of -0.14, suggesting that its stock price is 114% less volatile than the S&P 500. Comparatively, Thor Industries has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.
Thor Industries beats American Outdoor Brands on 12 of the 17 factors compared between the two stocks.
About American Outdoor Brands
American Outdoor Brands Corporation, formerly Smith & Wesson Holding Corporation, is a manufacturer of firearms and a provider of accessory products for the shooting, hunting and outdoor enthusiast. The Company operates through two segments. The Firearms segment manufactures handgun and long gun products sold under the Smith & Wesson, M&P and Thompson/Center Arms brands, as well as providing forging, machining and precision plastic injection molding services. The Outdoor Products & Accessories segment provides shooting, hunting and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems and tactical lighting products. Brands in Outdoor Products & Accessories include Crimson Trace, Caldwell Shooting Supplies, Wheeler Engineering, Lockdown Vault Accessories, BOG POD and Golden Rod Moisture Control, as well as knives and specialty tools under Schrade, Old Timer, Uncle Henry and Imperial.
About Thor Industries
Thor Industries, Inc. manufactures a range of recreational vehicles (RVs) in the United States and sells those vehicles primarily in the United States and Canada. The Company’s segments include towable recreational vehicles, which consists of the operations of Airstream, Inc. (Airstream) (towable); Heartland Recreational Vehicles, LLC (Heartland) (including Bison Coach, LLC (Bison), Cruiser RV, LLC (CRV) and DRV, LLC (DRV)); Jayco, Corp. (Jayco) (including Jayco towable, Starcraft and Highland Ridge), Keystone RV Company (Keystone) (including CrossRoads and Dutchmen) and K.Z., Inc. (KZ) (including Livin’ Lite RV, Inc. (Livin’ Lite)); motorized recreational vehicles, which consists of the operations of Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) and Thor Motor Coach, Inc. (Thor Motor Coach), and Other, which includes the operations of its subsidiary, Postle Operating, LLC (Postle).
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