GrowGeneration vs American Outdoor Brands

GrowGeneration Corp and American Outdoor Brands, Inc. This page compares their business models, financial performance, and market context in a neutral, accessible way. It outlines key considerations and context to help readers understand how the two companies operate in their sectors. Educational content, not financial advice.

GrowGeneration Corp and American Outdoor Brands, Inc. This page compares their business models, financial performance, and market context in a neutral, accessible way. It outlines key considerations a...

Comparison Snapshot

Key Financial Metrics

GRWG

Metric

AOUT

$86.17M

Market Cap

$109.12M

139.95%

Potential Profit

18.04%

Hold

Analyst Rating

Buy

Investment Analysis

GrowGeneration

GRWG

Pros

GrowGeneration reported a better-than-expected Q3 2025 revenue of $47.3 million, exceeding forecasts by 9.1%, with 15.4% sequential sales growth.
The company improved its gross margin significantly to 27.2% from 21.6% in the prior year quarter, indicating operational efficiency progress.
It maintains a strong balance sheet with more cash than debt, holding $48.3 million in cash and equivalents and no debt obligations.

Considerations

GrowGeneration has not been profitable in the last 12 months and still posted a net loss per share of $0.04 in Q3 2025.
Despite positive earnings surprises, the stock price fell post-earnings, reflecting investor concerns over uncertain future guidance and market conditions.
The company’s return on assets and equity remains negative, indicating ongoing challenges in profitability and capital efficiency.

American Outdoor Brands

AOUT

Pros

American Outdoor Brands operates in the outdoor and shooting sports market, benefiting from strong brand recognition and a diversified product portfolio.
The company has a history of innovation and expanding product lines to capture growth in outdoor recreation and firearms accessories.
It benefits from steady demand driven by outdoor lifestyle trends and a loyal customer base which supports revenue resilience.

Considerations

American Outdoor Brands faces regulatory risks associated with firearms laws that can impact sales and profitability.
The company operates in a cyclical industry that is sensitive to economic downturns and consumer discretionary spending patterns.
Execution risks remain inherent as the company balances growth initiatives against market competition and changing consumer preferences.

About The Companies

GrowGeneration (GRWG)

GrowGeneration Corp (GRWG) operates a chain of retail stores and e-commerce channels supplying hydroponic, indoor gardening and controlled-environment agriculture equipment. Products include grow lights, nutrients, HVAC and environmental controls, sold to commercial cultivators and hobbyist growers. Investors should note the company’s performance is closely tied to trends in indoor cultivation—particularly regulated cannabis markets—plus consumer adoption and competition from local and online suppliers. With a market capitalisation near $100m, GRWG is a relatively small and potentially volatile stock; profitability and cash flow have varied historically and capital needs may lead to dilution. Key factors to watch are store-level economics, inventory management, margin trends and regulatory developments. This is general educational information only and not personal advice; suitability depends on your circumstances. Consider reviewing the latest financial reports and, if needed, consult a qualified financial adviser before making investment decisions.

American Outdoor Brands (AOUT)

American Outdoor Brands, Inc. provides a wide array of products for outdoor enthusiasts and the shooting sports community. The company designs, sources, and sells items spanning hunting, fishing, outdoor cooking, camping, personal security, and defence. Its portfolio includes well-known brands such as Caldwell, BUBBA, Old Timer, and Crimson Trace, which cater to a diverse customer base. The company reaches its customers through both modern e-commerce platforms and traditional retail distribution channels. For potential investors, AOUT represents a business focused on the consumer lifestyle and leisure markets. It's important to remember that, like any investment, the value of shares can fluctuate, and past performance is not a reliable indicator of future results. This stock may be of interest to those looking at companies within the consumer discretionary sector.

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Which Baskets Do They Appear In?

Apocalypse Portfolio

This carefully selected collection of stocks represents companies that could thrive during major societal disruptions. Our team of analysts has identified businesses providing essential survival goods and services, from power generation to food security, that become invaluable when conventional systems falter.

Published: June 17, 2025

Explore Basket

Vice-Adjacent Economy

These carefully selected stocks represent the unsung heroes behind billion-dollar vice industries. Rather than betting on consumer-facing brands, our expert analysts have identified the essential B2B companies that provide critical infrastructure, technology, and services that make these markets possible.

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Comparison Snapshot