Critical Review: Outdoor (NASDAQ:POWW) and Woodward (NASDAQ:WWD)

Outdoor (NASDAQ:POWW) and Woodward (NASDAQ:WWD) are both aerospace 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.

Insider and Institutional Ownership

26.4% of Outdoor shares are held by institutional investors. Comparatively, 81.2% of Woodward shares are held by institutional investors. 25.0% of Outdoor shares are held by company insiders. Comparatively, 0.7% of Woodward 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.

Earnings and Valuation

This table compares Outdoor and Woodward”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$49.40 million	4.80	-$130.83 million	$0.04	50.50
Woodward	$3.57 billion	6.18	$442.11 million	$8.35	44.30

Woodward has higher revenue and earnings than Outdoor. Woodward 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 Outdoor and Woodward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outdoor	-161.16%	-8.65%	-7.16%
Woodward	12.85%	20.12%	10.72%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	1	1	2	0	2.25
Woodward	0	4	10	1	2.80

Outdoor currently has a consensus price target of $2.40, suggesting a potential upside of 18.81%. Woodward has a consensus price target of $390.27, suggesting a potential upside of 5.50%. Given Outdoor’s higher possible upside, research analysts clearly believe Outdoor is more favorable than Woodward.

Volatility and Risk

Outdoor has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Woodward has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Summary

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

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.

About Woodward

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.