Analyzing Wrap Technologies (NASDAQ:WRTC) and American Outdoor Brands (NASDAQ:AOUT)

American Outdoor Brands (NASDAQ:AOUT) and Wrap Technologies (NASDAQ:WRTC) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares American Outdoor Brands and Wrap Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Outdoor Brands N/A N/A N/A
Wrap Technologies -493.98% -42.45% -40.03%

Institutional & Insider Ownership

12.3% of American Outdoor Brands shares are held by institutional investors. Comparatively, 14.4% of Wrap Technologies shares are held by institutional investors. 54.5% of Wrap Technologies shares are held by 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.

Valuation & Earnings

This table compares American Outdoor Brands and Wrap Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Outdoor Brands N/A N/A N/A N/A N/A
Wrap Technologies $700,000.00 318.95 -$8.32 million ($0.29) -20.69

American Outdoor Brands has higher earnings, but lower revenue than Wrap Technologies.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Outdoor Brands and Wrap Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Outdoor Brands 0 1 3 0 2.75
Wrap Technologies 0 0 0 0 N/A

American Outdoor Brands currently has a consensus target price of $19.00, indicating a potential upside of 33.43%. Given American Outdoor Brands’ higher probable upside, analysts clearly believe American Outdoor Brands is more favorable than Wrap Technologies.

Summary

American Outdoor Brands beats Wrap Technologies on 5 of the 8 factors compared between the two stocks.

American Outdoor Brands Company Profile

American Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. The company offers hunting, fishing, camping, shooting, and personal security and defense products. Its products include shooting supplies, rests, vaults, and other related accessories; premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; electro-optical devices comprising hunting optics, firearm aiming devices, flashlights, and laser grips; reloading, gunsmithing, and firearm cleaning supplies; and survival, camping, and emergency preparedness products. The company sells its products through e-commerce and traditional distribution channels under the Marksman, Defender, Harvester, and Adventure brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.

Wrap Technologies Company Profile

Wrap Technologies, Inc., a security technology company, develops security products for law enforcement and security personnel. It develops BolaWrap 100, a hand-held remote restraint device that discharges an eight-foot bola style Kevlar tether to entangle a subject at a range of 10-25 feet. The company was founded in 2016 and is headquartered in Tempe, Arizona.

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