Black Diamond (NASDAQ: BDE) and Johnson Outdoors (NASDAQ:JOUT) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Black Diamond and Johnson Outdoors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Diamond -4.51% -0.72% -0.57%
Johnson Outdoors 6.85% 12.90% 8.53%

Analyst Ratings

This is a summary of current recommendations for Black Diamond and Johnson Outdoors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Diamond 0 1 2 0 2.67
Johnson Outdoors 0 0 2 0 3.00

Black Diamond currently has a consensus target price of $7.50, indicating a potential upside of 12.78%. Johnson Outdoors has a consensus target price of $46.50, indicating a potential downside of 24.53%. Given Black Diamond’s higher possible upside, analysts plainly believe Black Diamond is more favorable than Johnson Outdoors.

Earnings & Valuation

This table compares Black Diamond and Johnson Outdoors’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Black Diamond N/A N/A N/A ($0.23) -28.91
Johnson Outdoors $473.75 million 1.14 $51.51 million $3.23 19.07

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

Dividends

Johnson Outdoors pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Black Diamond does not pay a dividend. Johnson Outdoors pays out 11.1% of its earnings in the form of a dividend.

Risk and Volatility

Black Diamond has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Johnson Outdoors has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

44.7% of Black Diamond shares are owned by institutional investors. Comparatively, 60.4% of Johnson Outdoors shares are owned by institutional investors. 33.6% of Black Diamond shares are owned by insiders. Comparatively, 28.4% of Johnson Outdoors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Johnson Outdoors beats Black Diamond on 8 of the 12 factors compared between the two stocks.

About Black Diamond

Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

About Johnson Outdoors

Johnson Outdoors Inc. is a manufacturer and marketer of branded seasonal, outdoor recreation products. The Company operates through four segments: Marine Electronics, Outdoor Equipment, Watercraft and Diving. Its Marine Electronics segment’s brands are Minn Kota, Humminbird and Cannon. Its Outdoor Equipment segment’s brands are Eureka!, Jetboil and Silva. Its Watercraft segment designs and markets Necky sea touring kayaks; sit on top Ocean Kayaks, and Old Town canoes and kayaks for family recreation, touring, angling and tripping. The Company manufactures and markets underwater diving products for recreational divers, which it sells and distributes under the SCUBAPRO brand name. It markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels and accessories. The Company’s products are used for fishing from a boat, diving, paddling, hiking and camping.

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