Clarus Corp (NASDAQ: BDE) and Black Diamond (NASDAQ:CLAR) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

44.7% of Clarus Corp shares are owned by institutional investors. Comparatively, 47.7% of Black Diamond shares are owned by institutional investors. 33.6% of Clarus Corp shares are owned by insiders. Comparatively, 33.6% of Black Diamond shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Clarus Corp and Black Diamond’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Clarus Corp N/A N/A N/A ($0.23) -28.91
Black Diamond $153.08 million 1.43 -$515,999.00 ($0.23) -31.74

Clarus Corp has higher revenue, but lower earnings than Black Diamond. Black Diamond is trading at a lower price-to-earnings ratio than Clarus Corp, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Clarus Corp has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Black Diamond has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Profitability

This table compares Clarus Corp and Black Diamond’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clarus Corp -11.91% -9.29% -7.83%
Black Diamond -4.51% -0.72% -0.57%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Clarus Corp and Black Diamond, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clarus Corp 0 1 2 0 2.67
Black Diamond 0 1 0 0 2.00

Clarus Corp currently has a consensus target price of $7.50, indicating a potential upside of 12.78%. Black Diamond has a consensus target price of $7.00, indicating a potential downside of 4.11%. Given Clarus Corp’s stronger consensus rating and higher possible upside, research analysts plainly believe Clarus Corp is more favorable than Black Diamond.

Summary

Black Diamond beats Clarus Corp on 6 of the 9 factors compared between the two stocks.

About Clarus Corp

Clarus Corporation, formerly Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

About Black Diamond

Clarus Corporation, formerly Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

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