Asbury Automotive Group (NYSE:ABG – Get Free Report) and Outdoor (NASDAQ:POWW – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Institutional & Insider Ownership
26.4% of Outdoor shares are held by institutional investors. 0.7% of Asbury Automotive Group shares are held by company insiders. Comparatively, 28.1% of Outdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Asbury Automotive Group and Outdoor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Asbury Automotive Group | 2 | 5 | 3 | 0 | 2.10 |
| Outdoor | 0 | 2 | 2 | 0 | 2.50 |
Asbury Automotive Group currently has a consensus price target of $220.88, indicating a potential upside of 5.39%. Outdoor has a consensus price target of $2.62, indicating a potential upside of 9.38%. Given Outdoor’s stronger consensus rating and higher possible upside, analysts plainly believe Outdoor is more favorable than Asbury Automotive Group.
Profitability
This table compares Asbury Automotive Group and Outdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Asbury Automotive Group | 2.66% | 11.85% | 4.09% |
| Outdoor | 12.08% | 1.90% | 1.67% |
Valuation and Earnings
This table compares Asbury Automotive Group and Outdoor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Asbury Automotive Group | $17.59 billion | 0.21 | $492.00 million | $25.06 | 8.36 |
| Outdoor | $51.12 million | 5.45 | -$3.54 million | $0.03 | 80.00 |
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.
Volatility and Risk
Asbury Automotive Group has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Outdoor has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Summary
Outdoor beats Asbury Automotive Group on 8 of the 14 factors compared between the two stocks.
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.
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.
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