Financial Analysis: LCI Industries (DW) & American Outdoor Brands Corporation (AOBC)
LCI Industries (NYSE: DW) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
LCI Industries pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. American Outdoor Brands Corporation does not pay a dividend. LCI Industries pays out 41.7% of its earnings in the form of a dividend.
Insider & Institutional Ownership
93.6% of LCI Industries shares are owned by institutional investors. Comparatively, 72.5% of American Outdoor Brands Corporation shares are owned by institutional investors. 3.8% of LCI Industries shares are owned by company insiders. Comparatively, 2.3% of American Outdoor Brands Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares LCI Industries and American Outdoor Brands Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Outdoor Brands Corporation||$825.26 million||0.96||$204.58 million||$1.60||9.19|
American Outdoor Brands Corporation has higher revenue and earnings than LCI Industries. American Outdoor Brands Corporation is trading at a lower price-to-earnings ratio than LCI Industries, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
LCI Industries has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for LCI Industries and American Outdoor Brands Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Outdoor Brands Corporation||0||5||5||0||2.50|
LCI Industries presently has a consensus target price of $120.00, suggesting a potential upside of 11.37%. American Outdoor Brands Corporation has a consensus target price of $19.35, suggesting a potential upside of 31.63%. Given American Outdoor Brands Corporation’s higher possible upside, analysts clearly believe American Outdoor Brands Corporation is more favorable than LCI Industries.
This table compares LCI Industries and American Outdoor Brands Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Outdoor Brands Corporation||10.96%||27.91%||14.47%|
LCI Industries beats American Outdoor Brands Corporation on 7 of the 13 factors compared between the two stocks.
About LCI Industries
LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.
About American Outdoor Brands Corporation
American Outdoor Brands Corporation, formerly Smith & Wesson Holding Corporation, is a manufacturer of firearms and a provider of accessory products for the shooting, hunting and outdoor enthusiast. The Company operates through two segments. The Firearms segment manufactures handgun and long gun products sold under the Smith & Wesson, M&P and Thompson/Center Arms brands, as well as providing forging, machining and precision plastic injection molding services. The Outdoor Products & Accessories segment provides shooting, hunting and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems and tactical lighting products. Brands in Outdoor Products & Accessories include Crimson Trace, Caldwell Shooting Supplies, Wheeler Engineering, Lockdown Vault Accessories, BOG POD and Golden Rod Moisture Control, as well as knives and specialty tools under Schrade, Old Timer, Uncle Henry and Imperial.
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