Vista Outdoor (NYSE: VSTO) and Axon Enterprise (NASDAQ:AAXN) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

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This is a breakdown of current recommendations and price targets for Vista Outdoor and Axon Enterprise, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vista Outdoor 1 5 1 0 2.00
Axon Enterprise 0 4 5 0 2.56

Vista Outdoor currently has a consensus price target of $19.08, suggesting a potential upside of 7.03%. Axon Enterprise has a consensus price target of $37.17, suggesting a potential downside of 13.51%. Given Vista Outdoor’s higher probable upside, analysts clearly believe Vista Outdoor is more favorable than Axon Enterprise.

Profitability

This table compares Vista Outdoor and Axon Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vista Outdoor -1.88% 3.45% 1.49%
Axon Enterprise 1.59% 8.17% 4.17%

Risk and Volatility

Vista Outdoor has a beta of -0.39, suggesting that its share price is 139% less volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Valuation & Earnings

This table compares Vista Outdoor and Axon Enterprise’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vista Outdoor $2.55 billion 0.40 -$274.45 million $1.90 9.38
Axon Enterprise $343.80 million 6.66 $5.20 million $0.27 159.15

Axon Enterprise has lower revenue, but higher earnings than Vista Outdoor. Vista Outdoor is trading at a lower price-to-earnings ratio than Axon Enterprise, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

95.9% of Axon Enterprise shares are held by institutional investors. 1.5% of Vista Outdoor shares are held by company insiders. Comparatively, 3.9% of Axon Enterprise 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.

Summary

Axon Enterprise beats Vista Outdoor on 11 of the 14 factors compared between the two stocks.

Vista Outdoor Company Profile

Vista Outdoor Inc. designs, manufactures, and markets consumer products for outdoor sports and recreation markets worldwide. The company's Shooting Sports segment designs, develops, produces, and sources ammunition and firearms, such as centerfire ammunition, rimfire ammunition, shotshell ammunition, and reloading components for the hunting and sport shooting enthusiast markets, local law enforcement, the United States government, and international markets under the American Eagle, Blazer, CCI, Estate Cartridge, Federal Premium, Force on Force, Fusion, Independence, Savage Arms, Savage Range Systems, Speer, and Stevens brands. Its Outdoor Products segment offers helmets, goggles, and accessories for cycling, snow sports, action sports, and powersports; hunting arrows, game calls, hunting blinds, game cameras, and waterfowl decoys; camping products, such as outdoor cooking solutions; and water sports products consisting of stand up paddle boards. This segment also provides safety and protective eyewear, and fashion and sports eyewear; golf products, including laser rangefinders; hydration packs and water bottles; binoculars, riflescopes, and telescopes; reloading equipment, clay targets, and premium gun care products; and holsters, duty gear, bags and packs. It provides its products under the Alliant Powder, Bee Stinger, Bell, Blackburn, BLACKHAWK!, Bollé, Bushnell, Butler Creek, C-Preme, CamelBak, Camp Chef, Cébé, Champion Target, CoPilot, Eagle, Final Approach, Giro, Gold Tip, GunMate, Gunslick Pro, Hoppe's, Jimmy Styks, Krash, M-Pro 7, Millett, Night Optics, Outers, Primos, Raskullz, Redfield, Serengeti, Simmons, Tasco, Uncle Mike's, and Weaver brand names. The company sells its products to outdoor enthusiasts, hunters and recreational shooters, athletes, and law enforcement and military professionals through various mass, specialty, and independent retailers and distributors. Vista Outdoor Inc. was incorporated in 2014 and is headquartered in Farmington, Utah.

Axon Enterprise Company Profile

Axon Enterprise, Inc. develops, manufactures, and sells conducted electrical weapons (CEWs) worldwide. The company operates through two segments, TASER Weapons, and Software and Sensors. It offers TASER X26P and TASER X2 smart weapons for law enforcement; consumer CEWs; and replacement cartridges and consumables, as well as performance power magazines. The company also provides Axon Body 2; Axon Flex 2 that builds upon the Axon Flex camera system; Axon Fleet, an in-car video system; Axon Dock, a camera charging station; TASER Cam HD, a recording device; Axon Signal, a technology; and Signal Sidearm, a device compatible with firearm holsters. In addition, it offers Evidence.com, a cloud-based digital evidence management system that allows agencies to store data and enables new workflows for managing and sharing that data; Evidence Sync, a desktop-based application that enables evidence to be uploaded to Evidence.com; and Commander, an on-premise application that consolidates customer's digital evidence in one secure location. Further, the company provides Axon Citizen, a mobile application that offers a public safety portal, where community members can submit photos and videos of an incident; Axon Capture, a mobile application to allow officers to capture digital evidence from the field; Axon View, a mobile application to provide instant playback of unfolding events; and Axon Interview, a recording system designed for the interview room. Axon Enterprise, Inc. sells its products to military forces, private security, correctional facilities, and consumer personal protection markets, as well as to federal, state, and local law enforcement agencies through its direct sales force, distribution partners, online store, and third-party resellers. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. n April 2017. Axon Enterprise, Inc. was founded in 1993 and is headquartered in Scottsdale, Arizona.

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