Outdoor (NASDAQ:POWW – Get Free Report) and Hexcel (NYSE:HXL – Get Free Report) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Earnings and Valuation
This table compares Outdoor and Hexcel”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outdoor | $49.40 million | 3.86 | -$130.83 million | ($0.32) | -5.09 |
| Hexcel | $1.90 billion | 3.04 | $132.10 million | $0.85 | 85.54 |
Risk and Volatility
Outdoor has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Hexcel has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.
Institutional & Insider Ownership
26.4% of Outdoor shares are owned by institutional investors. Comparatively, 95.5% of Hexcel shares are owned by institutional investors. 25.0% of Outdoor shares are owned by insiders. Comparatively, 1.4% of Hexcel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for Outdoor and Hexcel, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outdoor | 1 | 1 | 1 | 0 | 2.00 |
| Hexcel | 2 | 8 | 3 | 0 | 2.08 |
Outdoor currently has a consensus price target of $2.00, indicating a potential upside of 22.70%. Hexcel has a consensus price target of $72.00, indicating a potential downside of 0.98%. Given Outdoor’s higher possible upside, equities analysts plainly believe Outdoor is more favorable than Hexcel.
Profitability
This table compares Outdoor and Hexcel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outdoor | N/A | -18.60% | -15.41% |
| Hexcel | 3.67% | 9.25% | 5.15% |
Summary
Hexcel beats Outdoor on 11 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 Hexcel
Hexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space and defense, and industrial applications. It operates through two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets fabrics, multi-axials, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and rail transportation. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings; and RF interference control products for military and aerospace applications. This segment also provides interference control materials, structural composites, and services; dielectric absorber foams; magnetic absorbers; and thermoplastics for commercial and defense applications. The company sells its products directly through its managers, product managers, and sales personnel, as well as through independent distributors in the Americas, Europe, the Asia Pacific, India, and Africa. Hexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.
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