Contrasting AMMO (OTCMKTS:POWW) & Axon Enterprise (NASDAQ:AXON)

AMMO (OTCMKTS:POWW) and Axon Enterprise (NASDAQ:AXON) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares AMMO and Axon Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMMO N/A -30.03% -14.75%
Axon Enterprise -7.37% -6.05% -4.28%

Insider & Institutional Ownership

28.1% of AMMO shares are held by institutional investors. Comparatively, 74.9% of Axon Enterprise shares are held by institutional investors. 2.3% of Axon Enterprise shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

AMMO has a beta of -0.69, suggesting that its stock price is 169% less volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for AMMO and Axon Enterprise, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMMO 0 0 2 0 3.00
Axon Enterprise 0 1 4 1 3.00

AMMO currently has a consensus price target of $9.00, suggesting a potential upside of 28.21%. Axon Enterprise has a consensus price target of $176.80, suggesting a potential upside of 17.30%. Given AMMO’s higher possible upside, equities research analysts clearly believe AMMO is more favorable than Axon Enterprise.

Valuation and Earnings

This table compares AMMO and Axon Enterprise’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AMMO $4.57 million 106.85 N/A N/A N/A
Axon Enterprise $681.00 million 14.32 -$1.72 million $0.11 1,370.18

AMMO has higher earnings, but lower revenue than Axon Enterprise.

Summary

Axon Enterprise beats AMMO on 8 of the 11 factors compared between the two stocks.

AMMO Company Profile

Ammo, Inc. designs, develops, manufactures, markets, and sells ammunition and ammunition component products for use in handguns and long guns in the United States and internationally. The company offers STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; One Precise Shot ammunition, which is designed to meet various engagement scenarios experienced by law enforcement personnel in the line of duty; and Stelth Subsonic ammunition that is designed primarily for suppressed firearms. It also provides Jesse James ammunition, a jacketed hollow point projectile for self-defense; and Jeff Rann's ammunition for game hunting. In addition, the company offers hard armor piercing incendiary rounds; and ammunition casings for pistol ammunition through large rifle ammunition. The company offers its products to sport and recreational shooters, hunters, individuals seeking home or personal protection, and law enforcement and military agencies. Ammo, Inc. was founded in 1990 and is based in Scottsdale, Arizona.

Axon Enterprise Company Profile

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy weapons (CEWs) under the TASER brand in the United States and internationally. It operates through two segments, TASER and Software and Sensors. The company offers TASER X26P, TASER X2, TASER 7, and TASER Pulse CEWs; and related cartridges. It also provides on-officer body cameras and Axon Fleet in-car video systems; and Axon Evidence digital evidence management software; Axon Records, a cloud-based records management system; Axon Signal enabled devices; and computer-aided dispatch software, as well as Axon docks, cartridges, and batteries. In addition, the company offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. It sells its products through its direct sales force, distribution partners, online store, and third-party resellers. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.

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