Comparing Outdoor (NASDAQ:POWW) & Lowe’s Companies (NYSE:LOW)

Lowe’s Companies (NYSE:LOW) and Outdoor (NASDAQ:POWW) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lowe’s Companies	7.34%	-75.67%	12.82%
Outdoor	12.08%	1.90%	1.67%

Analyst Ratings

This is a summary of current ratings and price targets for Lowe’s Companies and Outdoor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lowe’s Companies	2	12	22	1	2.59
Outdoor	0	1	1	1	3.00

Lowe’s Companies presently has a consensus price target of $254.74, indicating a potential upside of 10.03%. Outdoor has a consensus price target of $2.75, indicating a potential upside of 18.03%. Given Outdoor’s stronger consensus rating and higher probable upside, analysts clearly believe Outdoor is more favorable than Lowe’s Companies.

Risk & Volatility

Lowe’s Companies has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Outdoor has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lowe’s Companies and Outdoor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lowe’s Companies	$86.29 billion	1.51	$6.65 billion	$11.83	19.57
Outdoor	$53.75 million	5.03	-$3.54 million	$0.03	77.67

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

Insider & Institutional Ownership

74.1% of Lowe’s Companies shares are owned by institutional investors. Comparatively, 26.4% of Outdoor shares are owned by institutional investors. 0.3% of Lowe’s Companies shares are owned by insiders. Comparatively, 28.1% of Outdoor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Outdoor beats Lowe’s Companies on 8 of the 14 factors compared between the two stocks.

About Lowe’s Companies

Lowe’s Companies, Inc. is a home improvement retailer serving homeowners, do-it-yourself customers and professional contractors. The company sells products for construction, maintenance, repair and renovation through its retail stores and online channels. Its offerings include appliances, tools, hardware, lumber and building materials, paint, plumbing and electrical supplies, and products for lawn and garden. Lowe’s also provides services such as installation and other project support. Founded in 1921 in North Wilkesboro, North Carolina, Lowe’s has grown into a major retailer operating across the United States.

About Outdoor

Outdoor, formerly known as AMMO, Inc., is an outdoor-focused company serving the firearms, hunting, shooting and broader recreation markets. Its principal business is GunBroker.com, an online marketplace that connects buyers and sellers of firearms, ammunition, accessories, sporting goods and related outdoor products, subject to applicable laws and regulations. The company’s marketplace provides product listings, transaction services and related digital tools for its community of consumers, dealers and manufacturers.