Head to Head Comparison: AMMO (NASDAQ:POWW) vs. Revelyst (NYSE:GEAR)

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

Analyst Recommendations

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

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

AMMO has a consensus price target of $1.50, indicating a potential upside of 52.58%. Given AMMO’s stronger consensus rating and higher probable upside, analysts clearly believe AMMO is more favorable than Revelyst.

Profitability

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

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

Risk and Volatility

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

Earnings and Valuation

This table compares Revelyst and AMMO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revelyst	$1.23 billion	0.91	-$5.51 million	($0.18)	-105.72
AMMO	$141.75 million	0.82	-$15.56 million	($0.21)	-4.68

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.

Insider and Institutional Ownership

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

Summary

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

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.

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.