Financial Contrast: Outdoor (NASDAQ:POWW) versus Torrid (NYSE:CURV)

Outdoor (NASDAQ:POWW) and Torrid (NYSE:CURV) 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, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Insider and Institutional Ownership

26.4% of Outdoor shares are owned by institutional investors. Comparatively, 81.8% of Torrid shares are owned by institutional investors. 28.1% of Outdoor shares are owned by company insiders. Comparatively, 6.5% of Torrid shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Outdoor and Torrid’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%
Torrid	-0.94%	N/A	-4.49%

Risk & Volatility

Outdoor has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Torrid has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Outdoor and Torrid, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Outdoor	0	1	2	1	3.00
Torrid	2	5	1	0	1.88

Outdoor presently has a consensus target price of $2.62, suggesting a potential upside of 17.71%. Torrid has a consensus target price of $1.81, suggesting a potential downside of 25.26%. Given Outdoor’s stronger consensus rating and higher probable upside, equities analysts clearly believe Outdoor is more favorable than Torrid.

Valuation and Earnings

This table compares Outdoor and Torrid”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Outdoor	$53.75 million	4.82	-$3.54 million	$0.03	74.33
Torrid	$948.85 million	0.25	-$7.03 million	($0.09)	-26.94

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

Summary

Outdoor beats Torrid on 13 of the 15 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 Torrid

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.