Comparing Sturm Ruger & Company Inc (NYSE:RGR) & Smith & Wesson Brands (NYSE:SWBI)
Sturm Ruger & Company Inc (NYSE:RGR) and Smith & Wesson Brands (NASDAQ:SWBI) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
This is a breakdown of current ratings for Sturm Ruger & Company Inc and Smith & Wesson Brands, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sturm Ruger & Company Inc||0||0||1||0||3.00|
|Smith & Wesson Brands||0||1||2||0||2.67|
Volatility & Risk
Sturm Ruger & Company Inc has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
This table compares Sturm Ruger & Company Inc and Smith & Wesson Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sturm Ruger & Company Inc||8.24%||12.17%||10.17%|
|Smith & Wesson Brands||-9.03%||10.26%||5.76%|
Institutional & Insider Ownership
68.4% of Sturm Ruger & Company Inc shares are held by institutional investors. Comparatively, 67.0% of Smith & Wesson Brands shares are held by institutional investors. 4.5% of Sturm Ruger & Company Inc shares are held by company insiders. Comparatively, 2.7% of Smith & Wesson Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Sturm Ruger & Company Inc and Smith & Wesson Brands’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sturm Ruger & Company Inc||$410.51 million||3.12||$32.29 million||N/A||N/A|
|Smith & Wesson Brands||$678.39 million||1.64||-$61.23 million||$0.82||24.48|
Sturm Ruger & Company Inc has higher earnings, but lower revenue than Smith & Wesson Brands.
Sturm Ruger & Company Inc beats Smith & Wesson Brands on 10 of the 13 factors compared between the two stocks.
About Sturm Ruger & Company Inc
Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. It operates in two segments, Firearms and Castings. It offers single-shot, autoloading, bolt-action, and sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts. The company also manufactures and sells steel investment castings and metal injection molding (MIM) parts. It sells its firearm products through independent wholesale distributors principally to the commercial sporting market; and castings and MIM parts directly or through manufacturers' representatives. The company also exports its firearm products through a network of commercial distributors and directly to foreign customers comprising primarily of law enforcement agencies and foreign governments. Sturm, Ruger & Company, Inc. was founded in 1949 and is headquartered in Southport, Connecticut.
About Smith & Wesson Brands
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. It operates through the Firearms and Outdoor Products & Accessories segments. The Firearms segment comprises the manufacture of handguns, long guns, handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers. The Outdoor Products & Accessories segment engages in the distribution, manufacture, and design of reloading, gunsmithing, and gun cleaning supplies; stainless-steel cutting tools and accessories; flashlights; tree saws and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a full range of products for survival and emergency preparedness. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.
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