Critical Review: Johnson Outdoors (NASDAQ:JOUT) versus Fitell (NASDAQ:FTEL)

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

Earnings & Valuation

This table compares Johnson Outdoors and Fitell’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Outdoors	$663.84 million	0.70	$19.53 million	$1.71	26.29
Fitell	$4.80 million	20.62	-$1.59 million	N/A	N/A

Johnson Outdoors has higher revenue and earnings than Fitell.

Profitability

This table compares Johnson Outdoors and Fitell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson Outdoors	2.82%	3.47%	2.53%
Fitell	N/A	N/A	N/A

Institutional & Insider Ownership

64.1% of Johnson Outdoors shares are held by institutional investors. Comparatively, 0.1% of Fitell shares are held by institutional investors. 27.7% of Johnson Outdoors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Johnson Outdoors and Fitell, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Outdoors	0	0	0	0	N/A
Fitell	0	0	0	0	N/A

Summary

Johnson Outdoors beats Fitell on 7 of the 8 factors compared between the two stocks.

About Johnson Outdoors

Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide. It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving. The Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing. This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors. The Camping segment provides consumer, commercial, and military tents and accessories; camping stoves; other recreational camping products; and portable outdoor cooking systems. This segment sells its products under the Eureka! and Jetboil brands through specialty stores, sporting goods stores, internet retailers, and direct to consumers. The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under Old Town and Carlisle brands. The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name. This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, and public safety units. It sells its products through websites. The company was founded in 1970 and is headquartered in Racine, Wisconsin.

About Fitell

Fitell Corporation, together with its subsidiaries, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, and FleetX brand names. It is also involved in the boutique fitness clubs licensing business. The company sells its products through its online website and offline business, such as phone, e-mail, and showroom sales. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation is a subsidiary of SKMA Capital and Investment Ltd.