Lowe’s Companies (NYSE:LOW – Get Free Report) and Outdoor (NASDAQ:POWW – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Earnings and Valuation
This table compares Lowe’s Companies 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 | |
| Lowe’s Companies | $86.29 billion | 1.46 | $6.65 billion | $11.83 | 19.03 |
| Outdoor | $51.12 million | 5.22 | -$3.54 million | $0.03 | 76.67 |
Lowe’s Companies has higher revenue and earnings than Outdoor. Lowe’s Companies 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 Lowe’s Companies and Outdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lowe’s Companies | 7.34% | -75.67% | 12.82% |
| Outdoor | 12.08% | 1.90% | 1.67% |
Volatility and Risk
Lowe’s Companies has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Outdoor has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Lowe’s Companies and Outdoor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lowe’s Companies | 2 | 12 | 22 | 1 | 2.59 |
| Outdoor | 0 | 2 | 2 | 0 | 2.50 |
Lowe’s Companies presently has a consensus price target of $253.48, indicating a potential upside of 12.59%. Outdoor has a consensus price target of $2.62, indicating a potential upside of 14.13%. Given Outdoor’s higher probable upside, analysts plainly believe Outdoor is more favorable than Lowe’s Companies.
Insider and Institutional Ownership
74.1% of Lowe’s Companies shares are owned by institutional investors. Comparatively, 26.4% of Outdoor shares are owned by institutional investors. 0.3% of Lowe’s Companies shares are owned by company insiders. Comparatively, 28.1% of Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Lowe’s Companies beats Outdoor on 8 of the 15 factors compared between the two stocks.
About Lowe’s Companies
Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
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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