Analyzing Asbury Automotive Group (NYSE:ABG) & Outdoor (NASDAQ:POWW)

Outdoor (NASDAQ:POWW) and Asbury Automotive Group (NYSE:ABG) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Profitability

This table compares Outdoor and Asbury Automotive Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outdoor	12.08%	1.90%	1.67%
Asbury Automotive Group	2.83%	12.72%	4.31%

Risk & Volatility

Outdoor has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Institutional and Insider Ownership

26.4% of Outdoor shares are owned by institutional investors. 28.1% of Outdoor shares are owned by company insiders. Comparatively, 0.7% of Asbury Automotive Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Outdoor and Asbury Automotive Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$53.75 million	4.86	-$3.54 million	$0.03	75.00
Asbury Automotive Group	$18.00 billion	0.17	$492.00 million	$26.74	6.46

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Outdoor and Asbury Automotive Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	0	1	2	1	3.00
Asbury Automotive Group	1	6	2	0	2.11

Outdoor presently has a consensus price target of $2.62, suggesting a potential upside of 16.67%. Asbury Automotive Group has a consensus price target of $237.83, suggesting a potential upside of 37.58%. Given Asbury Automotive Group’s higher possible upside, analysts plainly believe Asbury Automotive Group is more favorable than Outdoor.

Summary

Outdoor beats Asbury Automotive Group on 8 of the 14 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 Asbury Automotive Group

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.