Fitell (NASDAQ:FTEL) & American Outdoor Brands (NASDAQ:AOUT) Critical Contrast

Fitell (NASDAQ:FTEL) and American Outdoor Brands (NASDAQ:AOUT) are both small-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Fitell and American Outdoor Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fitell	N/A	N/A	N/A
American Outdoor Brands	-5.47%	0.78%	0.60%

Insider & Institutional Ownership

0.1% of Fitell shares are owned by institutional investors. Comparatively, 49.9% of American Outdoor Brands shares are owned by institutional investors. 3.2% of American Outdoor Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Fitell and American Outdoor Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fitell	0	0	0	0	N/A
American Outdoor Brands	0	0	1	0	3.00

American Outdoor Brands has a consensus price target of $13.00, indicating a potential upside of 48.91%. Given American Outdoor Brands’ higher possible upside, analysts clearly believe American Outdoor Brands is more favorable than Fitell.

Valuation and Earnings

This table compares Fitell and American Outdoor Brands’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fitell	$4.80 million	15.92	-$1.59 million	N/A	N/A
American Outdoor Brands	$191.21 million	0.58	-$12.02 million	($0.82)	-10.65

Fitell has higher earnings, but lower revenue than American Outdoor Brands.

Summary

American Outdoor Brands beats Fitell on 7 of the 10 factors compared between the two stocks.

About Fitell

Fitell Corporation, together with its subsidiaries, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, and FleetX brand names. It is also involved in the boutique fitness clubs licensing business. The company sells its products through its online website and offline business, such as phone, e-mail, and showroom sales. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation is a subsidiary of SKMA Capital and Investment Ltd.

About American Outdoor Brands

American Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. In addition, it offers electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. The company sells its products through e-commerce and traditional distribution channels under the Adventurer, Harvester, Marksman, and Defender brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.