Black Diamond (NASDAQ: BDE) and Johnson Outdoors (NASDAQ:JOUT) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitabiliy, earnings, dividends, valuation and analyst recommendations.
Profitability
This table compares Black Diamond and Johnson Outdoors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Black Diamond | -4.24% | -0.03% | -0.02% |
| Johnson Outdoors | 6.85% | 13.33% | 8.74% |
Analyst Ratings
This is a breakdown of recent ratings for Black Diamond and Johnson Outdoors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Black Diamond | 0 | 0 | 2 | 0 | 3.00 |
| Johnson Outdoors | 0 | 0 | 2 | 0 | 3.00 |
Black Diamond presently has a consensus price target of $7.00, indicating a potential downside of 0.71%. Johnson Outdoors has a consensus price target of $46.50, indicating a potential downside of 19.83%. Given Black Diamond’s higher probable upside, research analysts plainly believe Black Diamond is more favorable than Johnson Outdoors.
Dividends
Johnson Outdoors pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Black Diamond does not pay a dividend. Johnson Outdoors pays out 11.1% of its earnings in the form of a dividend.
Institutional & Insider Ownership
44.4% of Black Diamond shares are owned by institutional investors. Comparatively, 60.3% of Johnson Outdoors shares are owned by institutional investors. 33.6% of Black Diamond shares are owned by company insiders. Comparatively, 28.4% of Johnson Outdoors shares are owned by company 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.
Valuation & Earnings
This table compares Black Diamond and Johnson Outdoors’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Black Diamond | N/A | N/A | N/A | ($0.21) | -33.57 |
| Johnson Outdoors | $457.77 million | 1.24 | $46.34 million | $3.23 | 17.96 |
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.
Risk and Volatility
Black Diamond has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Johnson Outdoors has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
Summary
Johnson Outdoors beats Black Diamond on 7 of the 11 factors compared between the two stocks.
Black Diamond Company Profile
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.
Johnson Outdoors Company Profile
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.
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