Contrasting American Outdoor Brands (NASDAQ:AOUT) and Malibu Boats (NASDAQ:MBUU)

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

Earnings & Valuation

This table compares Malibu Boats and American Outdoor Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Malibu Boats	$830.71 million	0.59	$14.88 million	$0.98	25.94
American Outdoor Brands	$222.32 million	0.37	-$80,000.00	($0.37)	-17.43

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

Volatility & Risk

Malibu Boats has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Malibu Boats	1.84%	4.93%	3.42%
American Outdoor Brands	-2.16%	2.00%	1.42%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Malibu Boats and American Outdoor Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Malibu Boats	1	7	1	0	2.00
American Outdoor Brands	2	0	1	0	1.67

Malibu Boats currently has a consensus target price of $36.50, suggesting a potential upside of 43.59%. American Outdoor Brands has a consensus target price of $19.00, suggesting a potential upside of 194.57%. Given American Outdoor Brands’ higher possible upside, analysts clearly believe American Outdoor Brands is more favorable than Malibu Boats.

Insider and Institutional Ownership

91.3% of Malibu Boats shares are held by institutional investors. Comparatively, 49.9% of American Outdoor Brands shares are held by institutional investors. 1.2% of Malibu Boats shares are held by insiders. Comparatively, 5.3% of American Outdoor Brands 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.

Summary

Malibu Boats beats American Outdoor Brands on 11 of the 13 factors compared between the two stocks.

About Malibu Boats

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.

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.