Johnson Outdoors (JOUT) versus Nautilus (NLS) Financial Analysis

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

Institutional and Insider Ownership

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62.7% of Johnson Outdoors shares are held by institutional investors. Comparatively, 89.0% of Nautilus shares are held by institutional investors. 18.5% of Johnson Outdoors shares are held by insiders. Comparatively, 3.7% of Nautilus shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Johnson Outdoors and Nautilus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Johnson Outdoors 0 1 2 0 2.67
Nautilus 0 3 3 0 2.50

Johnson Outdoors presently has a consensus target price of $73.50, suggesting a potential upside of 16.83%. Nautilus has a consensus target price of $16.96, suggesting a potential upside of 23.33%. Given Nautilus’ higher possible upside, analysts clearly believe Nautilus is more favorable than Johnson Outdoors.

Dividends

Johnson Outdoors pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Nautilus does not pay a dividend. Johnson Outdoors pays out 13.0% of its earnings in the form of a dividend.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Johnson Outdoors $490.57 million 1.28 $35.15 million $3.08 20.43
Nautilus $406.18 million 1.04 $26.26 million $0.88 15.63

Johnson Outdoors has higher revenue and earnings than Nautilus. Nautilus is trading at a lower price-to-earnings ratio than Johnson Outdoors, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Johnson Outdoors has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Nautilus has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Johnson Outdoors 6.10% 15.95% 10.73%
Nautilus 6.47% 15.93% 8.67%

Summary

Johnson Outdoors beats Nautilus on 10 of the 16 factors compared between the two stocks.

About Johnson Outdoors

Johnson Outdoors Inc. designs, manufactures, and markets outdoor equipment, diving, watercraft, and marine electronics products worldwide. The company's Fishing segment offers battery-powered fishing motors for trolling or primary propulsion, 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, marine products distributors, original equipment manufacturers, and distributors. Its camping segment offers consumer, commercial, and military tents and accessories; sleeping bags; camping furniture and stoves; other recreational camping products; and portable outdoor cooking systems, as well as acts as a subcontract manufacturer for other providers of military tents. This segment sells its products under the Eureka! and Jetboil brands through independent sales representatives and Internet retailers. The company's Watercraft Recreation segment provides kayaks, canoes, personal flotation devices, and paddles through independent specialty and outdoor retailers under the Ocean Kayaks, Old Town, and Carlisle brands. Its diving segment manufactures and markets underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories 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, public safety units, and armed forces. It sells its products through specialty dive stores, as well as through Websites. Johnson Outdoors Inc. was founded in 1970 and is headquartered in Racine, Wisconsin.

About Nautilus

Nautilus, Inc., a consumer fitness products company, designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer use in the United States, Canada, and internationally. The company operates in two segments, Direct and Retail. It offers specialized cardio products, treadmills, elliptical machine, bike products, strength products, home gyms, dumbbells, kettlebell weights, and weight benches primarily under the Nautilus, Bowflex, Octane Fitness, Schwinn, and Universal brands. In addition, it engages in licensing its brands and intellectual properties. The company offers its products directly to consumers through television advertising, catalogs, and the Internet; and through a network of retail companies consisting of sporting goods stores, Internet retailers, and large-format and warehouse stores, as well as specialty retailers and independent bike dealers. Nautilus, Inc. was founded in 1986 and is headquartered in Vancouver, Washington.

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