Johnson Outdoors (NASDAQ: JOUT) and Black Diamond (NASDAQ:CLAR) are both small-cap sporting & outdoor goods companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

59.6% of Johnson Outdoors shares are owned by institutional investors. Comparatively, 48.0% of Black Diamond shares are owned by institutional investors. 28.0% of Johnson Outdoors shares are owned by company insiders. Comparatively, 46.8% of Black Diamond shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Johnson Outdoors and Black Diamond’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Johnson Outdoors $433.73 million 1.63 $13.50 million $2.57 27.47
Black Diamond $148.19 million 1.53 -$8.97 million ($0.27) -28.04

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Johnson Outdoors and Black Diamond, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Johnson Outdoors 0 0 2 0 3.00
Black Diamond 0 1 1 0 2.50

Johnson Outdoors currently has a consensus price target of $67.50, suggesting a potential downside of 4.39%. Black Diamond has a consensus price target of $8.00, suggesting a potential upside of 5.68%. Given Black Diamond’s higher probable upside, analysts plainly believe Black Diamond is more favorable than Johnson Outdoors.

Dividends

Johnson Outdoors pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Black Diamond does not pay a dividend. Johnson Outdoors pays out 15.6% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Johnson Outdoors 6.85% 12.90% 8.53%
Black Diamond -5.07% -0.16% -0.13%

Volatility and Risk

Johnson Outdoors has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Black Diamond has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

Johnson Outdoors beats Black Diamond on 11 of the 15 factors compared between the two stocks.

About Johnson Outdoors

Johnson Outdoors Inc. is a manufacturer and marketer of branded seasonal, outdoor recreation products. The Company operates through four segments: Marine Electronics, Outdoor Equipment, Watercraft and Diving. Its Marine Electronics segment’s brands are Minn Kota, Humminbird and Cannon. Its Outdoor Equipment segment’s brands are Eureka!, Jetboil and Silva. Its Watercraft segment designs and markets Necky sea touring kayaks; sit on top Ocean Kayaks, and Old Town canoes and kayaks for family recreation, touring, angling and tripping. The Company manufactures and markets underwater diving products for recreational divers, which it sells and distributes under the SCUBAPRO brand name. It markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels and accessories. The Company’s products are used for fishing from a boat, diving, paddling, hiking and camping.

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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