Outdoor (NASDAQ:POWW – Get Free Report) and Tandy Leather Factory (NASDAQ:TLF – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Institutional and Insider Ownership
26.4% of Outdoor shares are owned by institutional investors. Comparatively, 56.4% of Tandy Leather Factory shares are owned by institutional investors. 28.1% of Outdoor shares are owned by insiders. Comparatively, 36.2% of Tandy Leather Factory shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Outdoor and Tandy Leather Factory, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outdoor | 0 | 2 | 2 | 0 | 2.50 |
| Tandy Leather Factory | 1 | 0 | 0 | 0 | 1.00 |
Outdoor currently has a consensus price target of $2.62, indicating a potential upside of 22.09%. Given Outdoor’s stronger consensus rating and higher possible upside, research analysts clearly believe Outdoor is more favorable than Tandy Leather Factory.
Profitability
This table compares Outdoor and Tandy Leather Factory’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outdoor | 12.08% | 1.90% | 1.67% |
| Tandy Leather Factory | -2.14% | -3.31% | -1.98% |
Valuation and Earnings
This table compares Outdoor and Tandy Leather Factory”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outdoor | $51.12 million | 4.88 | -$3.54 million | $0.03 | 71.67 |
| Tandy Leather Factory | $76.32 million | 0.26 | $9.10 million | ($0.17) | -14.00 |
Tandy Leather Factory has higher revenue and earnings than Outdoor. Tandy Leather Factory is trading at a lower price-to-earnings ratio than Outdoor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Outdoor has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Tandy Leather Factory has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
Summary
Outdoor beats Tandy Leather Factory on 9 of the 13 factors compared between the two stocks.
About Outdoor
AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.
About Tandy Leather Factory
Tandy Leather Factory, Inc. engages in the distribution of leather and related products. It offers leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It operates through North America and International geographical segments. The North America geographical segment consists of 115 stores, which offer a broad selection of products combined with leathercraft expertise in a one-stop shop. The International geographical segment comprises of similar to North America segment but generally located in light industrial areas. The company was founded by J. Wray Thompson, Sr. and Ronald C. Morgan in 1980 and is headquartered in Fort Worth, TX.
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