Outdoor (NASDAQ:POWW) versus RideNow Group (NASDAQ:RDNW) Head to Head Analysis

Outdoor (NASDAQ:POWW) and RideNow Group (NASDAQ:RDNW) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Outdoor and RideNow Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	0	2	2	0	2.50
RideNow Group	1	2	0	0	1.67

Outdoor currently has a consensus price target of $2.62, suggesting a potential upside of 20.41%. RideNow Group has a consensus price target of $8.50, suggesting a potential upside of 76.72%. Given RideNow Group’s higher possible upside, analysts plainly believe RideNow Group is more favorable than Outdoor.

Volatility & Risk

Outdoor has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, RideNow Group has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$51.12 million	4.95	-$3.54 million	$0.03	72.67
RideNow Group	$1.08 billion	0.17	-$52.40 million	($0.23)	-20.91

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Outdoor	12.08%	1.90%	1.67%
RideNow Group	-0.76%	N/A	-1.17%

Institutional and Insider Ownership

26.4% of Outdoor shares are held by institutional investors. Comparatively, 66.1% of RideNow Group shares are held by institutional investors. 28.1% of Outdoor shares are held by company insiders. Comparatively, 55.3% of RideNow Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Outdoor beats RideNow Group on 9 of the 14 factors compared between the two stocks.

About Outdoor

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 RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.