LCI Industries (NASDAQ: LCII) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both recreational products – nec companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for LCI Industries and American Outdoor Brands Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 1 0 2 0 2.33
American Outdoor Brands Corporation 0 5 5 0 2.50

LCI Industries currently has a consensus target price of $114.50, suggesting a potential downside of 0.99%. American Outdoor Brands Corporation has a consensus target price of $19.35, suggesting a potential upside of 42.38%. Given American Outdoor Brands Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe American Outdoor Brands Corporation is more favorable than LCI Industries.

Profitability

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
LCI Industries 7.33% 26.74% 18.11%
American Outdoor Brands Corporation 10.96% 27.91% 14.47%

Earnings and Valuation

This table compares LCI Industries and American Outdoor Brands Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
LCI Industries N/A N/A N/A $5.61 20.61
American Outdoor Brands Corporation $903.19 million 0.81 $127.85 million $1.60 8.49

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 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500.

Insider and Institutional Ownership

69.9% of American Outdoor Brands Corporation shares are owned by institutional investors. 2.3% of American Outdoor Brands Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

American Outdoor Brands Corporation beats LCI Industries on 8 of the 11 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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