Winnebago Industries (NYSE:WGO) and American Outdoor Brands Corporation (AOBC) Head to Head Analysis

American Outdoor Brands Corporation (NASDAQ: AOBC) and Winnebago Industries (NYSE:WGO) are both small-cap aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Insider and Institutional Ownership

71.3% of American Outdoor Brands Corporation shares are owned by institutional investors. Comparatively, 85.0% of Winnebago Industries shares are owned by institutional investors. 2.3% of American Outdoor Brands Corporation shares are owned by company insiders. Comparatively, 1.5% of Winnebago Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares American Outdoor Brands Corporation and Winnebago Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Outdoor Brands Corporation $825.26 million 0.95 $204.58 million $1.60 9.08
Winnebago Industries $1.36 billion 1.13 $115.70 million $2.30 21.07

American Outdoor Brands Corporation has higher revenue, but lower earnings than Winnebago Industries. American Outdoor Brands Corporation is trading at a lower price-to-earnings ratio than Winnebago Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. American Outdoor Brands Corporation does not pay a dividend. Winnebago Industries pays out 17.4% of its earnings in the form of a dividend. American Outdoor Brands Corporation has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings for American Outdoor Brands Corporation and Winnebago Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Outdoor Brands Corporation 0 5 5 0 2.50
Winnebago Industries 0 3 5 0 2.63

American Outdoor Brands Corporation presently has a consensus target price of $19.35, suggesting a potential upside of 33.26%. Winnebago Industries has a consensus target price of $43.33, suggesting a potential downside of 10.56%. Given American Outdoor Brands Corporation’s higher probable upside, equities research analysts plainly believe American Outdoor Brands Corporation is more favorable than Winnebago Industries.

Profitability

This table compares American Outdoor Brands Corporation and Winnebago Industries’ 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%
Winnebago Industries 4.61% 21.92% 10.18%

Risk and Volatility

American Outdoor Brands Corporation has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Winnebago Industries has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.

American Outdoor Brands Corporation Company Profile

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.

Winnebago Industries Company Profile

Winnebago Industries, Inc. is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The Company offers products under categories, which include motorhomes, towables and other manufactured products. The Company produces all of its motorhomes in vertically integrated manufacturing facilities in Iowa and it produces all travel trailer and fifth wheel trailers in Indiana. The Company operates under the brand, Winnebago. The Company distributes its products primarily through independent dealers throughout the United States and Canada, who then retail the products to the end consumer.

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