Head to Head Analysis: Sturm, Ruger & Company, Inc. (NYSE:RGR) versus Hasbro (NASDAQ:HAS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hasbro	18.44%	140.60%	17.09%
Sturm, Ruger & Company, Inc.	2.74%	8.02%	6.51%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hasbro	0	2	13	1	2.94
Sturm, Ruger & Company, Inc.	0	2	1	0	2.33

Hasbro presently has a consensus target price of $114.93, indicating a potential downside of 5.63%. Sturm, Ruger & Company, Inc. has a consensus target price of $46.00, indicating a potential downside of 11.46%. Given Hasbro’s stronger consensus rating and higher possible upside, analysts clearly believe Hasbro is more favorable than Sturm, Ruger & Company, Inc..

Dividends

Hasbro pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Sturm, Ruger & Company, Inc. pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Hasbro pays out 41.9% of its earnings in the form of a dividend. Sturm, Ruger & Company, Inc. pays out 83.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hasbro is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

91.8% of Hasbro shares are owned by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. 0.7% of Hasbro 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 company is poised for long-term growth.

Volatility and Risk

Hasbro has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hasbro	$4.70 billion	3.62	-$322.40 million	$6.69	18.20
Sturm, Ruger & Company, Inc.	$546.06 million	1.52	-$4.39 million	$1.01	51.44

Sturm, Ruger & Company, Inc. has lower revenue, but higher earnings than Hasbro. Hasbro 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

Hasbro beats Sturm, Ruger & Company, Inc. on 14 of the 17 factors compared between the two stocks.

About Hasbro

Hasbro, Inc. is a global play and entertainment company that develops and sells toys, games and digital experiences, and licenses its brands for consumer products and entertainment. Its portfolio includes Transformers, Play-Doh, Nerf, Monopoly, My Little Pony, Magic: The Gathering and Dungeons & Dragons. Founded in 1923 as Hassenfeld Brothers, the company began as a family business before expanding into toys and games. Hasbro serves consumers in markets around the world through its products, licensing partnerships and digital offerings.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms for the commercial sporting market. Its product portfolio includes pistols, revolvers, rifles, and related accessories marketed under the Ruger brand. The company serves customers through independent distributors, retailers, and other firearms dealers. Founded in 1949 by William B. Ruger and Alexander M. Sturm, the company is one of the largest firearms manufacturers in the United States. Its products are manufactured in the U.S. at facilities in New Hampshire, Arizona, and North Carolina.