Reviewing Outdoor (NASDAQ:POWW) & AeroVironment (NASDAQ:AVAV)

Outdoor (NASDAQ:POWW) and AeroVironment (NASDAQ:AVAV) are both aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Outdoor and AeroVironment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Outdoor	-38.60%	-18.60%	-15.41%
AeroVironment	5.32%	10.68%	8.80%

Valuation and Earnings

This table compares Outdoor and AeroVironment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$49.40 million	3.40	-$130.83 million	($0.46)	-3.12
AeroVironment	$820.63 million	14.08	$43.62 million	$1.55	149.31

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

Volatility and Risk

Outdoor has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, AeroVironment has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

26.4% of Outdoor shares are held by institutional investors. Comparatively, 86.4% of AeroVironment shares are held by institutional investors. 25.0% of Outdoor shares are held by company insiders. Comparatively, 0.8% of AeroVironment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Outdoor and AeroVironment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	0	2	1	0	2.33
AeroVironment	0	0	15	3	3.17

Outdoor presently has a consensus price target of $1.75, suggesting a potential upside of 21.95%. AeroVironment has a consensus price target of $292.33, suggesting a potential upside of 26.32%. Given AeroVironment’s stronger consensus rating and higher possible upside, analysts plainly believe AeroVironment is more favorable than Outdoor.

Summary

AeroVironment beats Outdoor on 13 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 AeroVironment

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.