Reviewing Outdoor (NASDAQ:POWW) and Rheinmetall (OTCMKTS:RNMBY)

by · The Markets Daily

Outdoor (NASDAQ:POWWGet Free Report) and Rheinmetall (OTCMKTS:RNMBYGet Free Report) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares Outdoor and Rheinmetall”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Outdoor$48.98 million4.87-$130.83 million($0.20)-10.18
Rheinmetall$10.55 billionN/A$775.87 million$2.52148.38

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

Institutional & Insider Ownership

26.4% of Outdoor shares are held by institutional investors. 25.0% of Outdoor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Outdoor and Rheinmetall, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Outdoor11202.25
Rheinmetall01323.17

Outdoor currently has a consensus price target of $2.38, indicating a potential upside of 16.71%. Given Outdoor’s higher probable upside, analysts plainly believe Outdoor is more favorable than Rheinmetall.

Profitability

This table compares Outdoor and Rheinmetall’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
OutdoorN/A-17.34%-14.24%
RheinmetallN/AN/AN/A

Volatility and Risk

Outdoor has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Rheinmetall has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Summary

Rheinmetall beats Outdoor on 9 of the 13 factors compared between the two stocks.

About Outdoor

(Get Free Report)

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 Rheinmetall

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Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.