Comparing Revelyst (NYSE:GEAR) and AMMO (NASDAQ:POWW)

AMMO (NASDAQ:POWW) and Revelyst (NYSE:GEAR) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

26.4% of AMMO shares are owned by institutional investors. Comparatively, 90.5% of Revelyst shares are owned by institutional investors. 25.0% of AMMO shares are owned by company insiders. Comparatively, 0.9% of Revelyst shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares AMMO and Revelyst”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMMO	$141.75 million	0.89	-$15.56 million	($0.21)	-5.05
Revelyst	$1.23 billion	0.91	-$5.51 million	($0.18)	-106.78

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

Profitability

This table compares AMMO and Revelyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMMO	-15.19%	2.35%	2.09%
Revelyst	-0.34%	19.53%	9.44%

Risk & Volatility

AMMO has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Revelyst has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AMMO and Revelyst, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMMO	0	1	0	0	2.00
Revelyst	0	0	0	0	0.00

AMMO presently has a consensus price target of $1.50, suggesting a potential upside of 41.51%. Given AMMO’s stronger consensus rating and higher probable upside, equities research analysts clearly believe AMMO is more favorable than Revelyst.

Summary

Revelyst beats AMMO on 9 of the 13 factors compared between the two stocks.

About AMMO

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 Revelyst

Vista Outdoor Inc. is the parent company of renowned brands which design, manufacture and market sporting and outdoor products. The company’s operating segment includes Outdoor Products and Sporting Products. Its brand portfolio includes Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Foresight Sports, Fiber Energy Products, Bell Helmets, Camp Chef, Giro, QuietKat, Stone Glacier, Federal Ammunition and more. The company principally serves outdoor enthusiasts, golfers, cyclists, backyard grillers, campers, hunters, recreational shooters, athletes, as well as law enforcement and military professionals. Vista Outdoor Inc. is based in ANOKA, Minn.