Outdoor (NASDAQ:POWW) versus Zalando (OTCMKTS:ZLNDY) Financial Contrast
by Jessica Moore · The Cerbat GemZalando (OTCMKTS:ZLNDY – Get Free Report) and Outdoor (NASDAQ:POWW – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Volatility and Risk
Zalando has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Zalando and Outdoor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zalando | 0 | 1 | 1 | 2 | 3.25 |
| Outdoor | 0 | 1 | 2 | 1 | 3.00 |
Outdoor has a consensus target price of $2.62, suggesting a potential upside of 23.24%. Given Outdoor’s higher probable upside, analysts clearly believe Outdoor is more favorable than Zalando.
Profitability
This table compares Zalando and Outdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zalando | 0.70% | 3.46% | 1.06% |
| Outdoor | 12.08% | 1.90% | 1.67% |
Institutional & Insider Ownership
26.4% of Outdoor shares are held by institutional investors. 28.1% of Outdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Zalando and Outdoor”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zalando | $13.97 billion | 0.45 | $243.36 million | $0.22 | 58.55 |
| Outdoor | $51.12 million | 4.84 | -$3.54 million | $0.03 | 71.00 |
Zalando has higher revenue and earnings than Outdoor. Zalando is trading at a lower price-to-earnings ratio than Outdoor, indicating that it is currently the more affordable of the two stocks.
Summary
Outdoor beats Zalando on 8 of the 15 factors compared between the two stocks.
About Zalando
Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
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.