Reviewing National Presto Industries (NPK) & American Outdoor Brands (AOBC)

National Presto Industries (NYSE: NPK) and American Outdoor Brands (NASDAQ:AOBC) are both small-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Earnings & Valuation

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This table compares National Presto Industries and American Outdoor Brands’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Presto Industries $333.63 million 2.04 $52.95 million N/A N/A
American Outdoor Brands $903.19 million 0.67 $127.85 million $2.58 4.31

American Outdoor Brands has higher revenue and earnings than National Presto Industries.

Insider and Institutional Ownership

61.7% of National Presto Industries shares are held by institutional investors. Comparatively, 74.9% of American Outdoor Brands shares are held by institutional investors. 29.5% of National Presto Industries shares are held by insiders. Comparatively, 2.3% of American Outdoor Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares National Presto Industries and American Outdoor Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Presto Industries 15.87% 14.85% 12.89%
American Outdoor Brands 6.05% 11.05% 5.59%

Risk and Volatility

National Presto Industries has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, American Outdoor Brands has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for National Presto Industries and American Outdoor Brands, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Presto Industries 0 0 0 0 N/A
American Outdoor Brands 0 3 5 1 2.78

American Outdoor Brands has a consensus price target of $17.63, indicating a potential upside of 58.50%. Given American Outdoor Brands’ higher possible upside, analysts plainly believe American Outdoor Brands is more favorable than National Presto Industries.

Summary

National Presto Industries beats American Outdoor Brands on 7 of the 13 factors compared between the two stocks.

About National Presto Industries

National Presto Industries Inc. provides housewares and small appliances, and defense products primarily in North America. The company operates in two segments, Housewares/Small Appliance and Defense. The Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; heat control single thermostatic control line of skillets, griddles, woks, and multi-purpose cookers under the Presto Control Master brand; slow cookers; deep fryers; air fryers; waffle makers; pizza ovens; slicer/shredders; electric heaters; hot air, oil, and microwave corn poppers; dehydrators; rice cookers; microwave bacon cookers; coffeemakers and coffeemaker accessories; electric tea kettles; electric knife sharpeners; various kitchen gadgets; and timers. This segment sells its products directly to retailers, as well as through independent distributors. The Defense segment manufactures and sells 40mm ammunition, precision mechanical and electro-mechanical assemblies, and medium caliber cartridge cases; less lethal products and support accessories; and detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. It also performs load, assemble, and pack operations on ordnance-related products; and provides training for the use of less lethal products. This segment primarily serves the United States Department of Defense (DOD) and DOD prime contractors. National Presto Industries, Inc. was founded in 1905 and is based in Eau Claire, Wisconsin.

About American Outdoor Brands

American Outdoor Brands Corp. manufactures firearms. Its products include handguns, long guns, handcuffs and firearm-related products and accessories for sale to a wide variety of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers and military agencies in the United States and throughout the world. It sells its products under the Smith & Wesson, M&P, Thompson and Center Arms brands. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.

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