Critical Comparison: American Outdoor Brands (NASDAQ:AOUT) & QuantaSing Group (NASDAQ:QSG)
by Doug Wharley · The Cerbat GemAmerican Outdoor Brands (NASDAQ:AOUT – Get Free Report) and QuantaSing Group (NASDAQ:QSG – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares American Outdoor Brands and QuantaSing Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Outdoor Brands | -4.83% | 0.67% | 0.48% |
| QuantaSing Group | 13.13% | 47.31% | 21.93% |
Institutional & Insider Ownership
49.9% of American Outdoor Brands shares are held by institutional investors. 5.3% of American Outdoor Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
American Outdoor Brands has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, QuantaSing Group has a beta of -0.98, meaning that its share price is 198% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for American Outdoor Brands and QuantaSing Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Outdoor Brands | 1 | 0 | 2 | 1 | 2.75 |
| QuantaSing Group | 0 | 1 | 0 | 0 | 2.00 |
American Outdoor Brands presently has a consensus target price of $14.25, indicating a potential upside of 13.37%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, research analysts clearly believe American Outdoor Brands is more favorable than QuantaSing Group.
Valuation & Earnings
This table compares American Outdoor Brands and QuantaSing Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Outdoor Brands | $190.54 million | 0.83 | -$9.21 million | ($0.73) | -17.22 |
| QuantaSing Group | $2.73 billion | 0.04 | $50.08 million | $0.90 | 2.11 |
QuantaSing Group has higher revenue and earnings than American Outdoor Brands. American Outdoor Brands is trading at a lower price-to-earnings ratio than QuantaSing Group, indicating that it is currently the more affordable of the two stocks.
Summary
American Outdoor Brands beats QuantaSing Group on 8 of the 15 factors compared between the two stocks.
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.
About QuantaSing Group
QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.