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AOUT vs HD

AOUT
American Outdoor Brands, Inc.
BEARISH
Price
$8.00
Market Cap
$101.2M
Sector
Consumer Cyclical
AI Confidence
85%
HD
The Home Depot, Inc.
BEARISH
Price
$328.89
Market Cap
$327.58B
Sector
Consumer Cyclical
AI Confidence
70%

Valuation

P/E Ratio
AOUT
--
HD
23.1
Forward P/E
AOUT
21.04
HD
20.17
P/B Ratio
AOUT
0.6
HD
25.57
P/S Ratio
AOUT
0.49
HD
1.99
EV/EBITDA
AOUT
18.24
HD
15.68

Profitability

Gross Margin
AOUT
43.06%
HD
33.32%
Operating Margin
AOUT
-0.85%
HD
10.08%
Profit Margin
AOUT
-4.78%
HD
8.6%
ROE
AOUT
-5.7%
HD
145.54%
ROA
AOUT
-1.64%
HD
12.98%

Growth

Revenue Growth
AOUT
-3.3%
HD
-3.8%
Earnings Growth
AOUT
--
HD
-14.2%

Financial Health

Debt/Equity
AOUT
0.2
HD
5.14
Current Ratio
AOUT
5.65
HD
1.06
Quick Ratio
AOUT
1.55
HD
0.21

Dividends

Dividend Yield
AOUT
--
HD
2.83%
Payout Ratio
AOUT
0.0%
HD
64.65%

AI Verdict

AOUT BEARISH

American Outdoor Brands (AOUT) exhibits severe financial distress signals, with a Piotroski F-Score of 2/9 indicating poor operational and financial health. The company reports negative profitability across key metrics—ROE (-5.70%), ROA (-1.64%), and a negative profit margin (-4.78%)—despite a strong gross margin (43.06%), suggesting cost control issues at the operating level. While the current ratio (5.65) and low debt/equity (0.20) suggest liquidity strength, the lack of consistent earnings and declining revenue (YoY -3.30%) undermine long-term viability. The absence of a Graham Number and intrinsic value estimate, combined with a 52-week price drop of 63.5%, reflects deep market skepticism. Analysts offer no consensus, and insider activity is neutral, further signaling caution.

Strengths
Strong gross margin of 43.06% indicates effective cost management at the production level
High current ratio (5.65) and low debt/equity (0.20) suggest strong short-term liquidity and low leverage risk
Recent quarterly earnings have shown significant positive surprises (e.g., +3300% in Q4 2025)
Risks
Piotroski F-Score of 2/9 signals extreme financial weakness and operational instability
Negative ROE (-5.70%) and ROA (-1.64%) indicate poor capital efficiency and declining profitability
Revenue and earnings are both declining (YoY -3.30% and -42.9% respectively), with negative operating margin (-0.85%)
HD BEARISH

HD shows bearish fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 145.5%
Risks
Premium vs Graham Number ($64.2)
Declining revenue (-3.8%)
High debt burden with D/E of 5.14

Compare Another Pair

AOUT vs HD: Head-to-Head Comparison

This page compares American Outdoor Brands, Inc. (AOUT) and The Home Depot, Inc. (HD) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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