YETI (NYSE:YETI) versus Sturm, Ruger & Company, Inc. (NYSE:RGR) Financial Review

YETI (NYSE:YETI) and Sturm, Ruger & Company, Inc. (NYSE:RGR) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares YETI and Sturm, Ruger & Company, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YETI	9.73%	24.60%	14.84%
Sturm, Ruger & Company, Inc.	1.07%	9.53%	7.98%

Institutional & Insider Ownership

64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. 1.1% of YETI shares are owned by company insiders. Comparatively, 4.6% of Sturm, Ruger & Company, Inc. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

YETI has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for YETI and Sturm, Ruger & Company, Inc., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YETI	0	10	5	0	2.33
Sturm, Ruger & Company, Inc.	1	0	0	0	1.00

YETI currently has a consensus target price of $38.54, indicating a potential upside of 20.06%. Given YETI’s stronger consensus rating and higher possible upside, analysts plainly believe YETI is more favorable than Sturm, Ruger & Company, Inc..

Earnings & Valuation

This table compares YETI and Sturm, Ruger & Company, Inc.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YETI	$1.83 billion	1.42	$175.69 million	$2.10	15.29
Sturm, Ruger & Company, Inc.	$535.64 million	1.37	$30.56 million	$0.31	146.06

YETI has higher revenue and earnings than Sturm, Ruger & Company, Inc.. YETI is trading at a lower price-to-earnings ratio than Sturm, Ruger & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Summary

YETI beats Sturm, Ruger & Company, Inc. on 11 of the 14 factors compared between the two stocks.

About YETI

YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands. The company also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, mugs, tumblers, straw mugs and cups, bottles, jugs, and water bottles, as well as accessories comprising bottle straw and chug caps, lids, straw lids, color packs, tumbler handles, and jug mounts under the Rambler brand. In addition, it offers apparel and gear products, such as hats, shirts, bottle openers, and ice substitutes. The company sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through its Website, YETI.com. It operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. YETI Holdings, Inc. was founded in 2006 and is headquartered in Austin, Texas.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Co., Inc. engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates through the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors. The Castings segment offers steel investment castings and metal injection molding parts. The company was founded by William B. Ruger in 1949 and is headquartered in Southport, CT.