Smith & Wesson Brands (SWBI) Competitors

Smith & Wesson Brands (NASDAQ:SWBI) and Sturm, Ruger & Company, Inc. (NYSE:RGR) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, media sentiment, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Do analysts rate SWBI or RGR?

Smith & Wesson Brands presently has a consensus price target of $12.00, suggesting a potential upside of 35.82%. Given Smith & Wesson Brands' stronger consensus rating and higher probable upside, research analysts plainly believe Smith & Wesson Brands is more favorable than Sturm, Ruger & Company, Inc..

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Wesson Brands	0 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.33
Sturm, Ruger & Company, Inc.	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Which has higher earnings and valuation, SWBI or RGR?

Sturm, Ruger & Company, Inc. has higher revenue and earnings than Smith & Wesson Brands. Smith & Wesson Brands 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Wesson Brands	$474.66M	0.82	$13.43M	$0.27	32.72
Sturm, Ruger & Company, Inc.	$535.64M	1.07	$30.56M	$0.31	114.00

Is SWBI or RGR more profitable?

Smith & Wesson Brands has a net margin of 2.60% compared to Sturm, Ruger & Company, Inc.'s net margin of 1.07%. Sturm, Ruger & Company, Inc.'s return on equity of 9.53% beat Smith & Wesson Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Smith & Wesson Brands	2.60%	3.71%	2.39%
Sturm, Ruger & Company, Inc.	1.07%	9.53%	7.98%

Do institutionals & insiders have more ownership in SWBI or RGR?

59.3% of Smith & Wesson Brands shares are held by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. 1.6% of Smith & Wesson Brands shares are held by insiders. Comparatively, 4.6% of Sturm, Ruger & Company, Inc. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Is SWBI or RGR a better dividend stock?

Smith & Wesson Brands pays an annual dividend of $0.52 per share and has a dividend yield of 5.9%. Sturm, Ruger & Company, Inc. pays an annual dividend of $0.64 per share and has a dividend yield of 1.8%. Smith & Wesson Brands pays out 192.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sturm, Ruger & Company, Inc. pays out 206.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Smith & Wesson Brands has increased its dividend for 4 consecutive years. Smith & Wesson Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has more volatility and risk, SWBI or RGR?

Smith & Wesson Brands has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Does the media refer more to SWBI or RGR?

In the previous week, Smith & Wesson Brands had 12 more articles in the media than Sturm, Ruger & Company, Inc.. MarketBeat recorded 16 mentions for Smith & Wesson Brands and 4 mentions for Sturm, Ruger & Company, Inc.. Smith & Wesson Brands' average media sentiment score of 1.03 beat Sturm, Ruger & Company, Inc.'s score of 0.96 indicating that Smith & Wesson Brands is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Smith & Wesson Brands	9 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Sturm, Ruger & Company, Inc.	2 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Smith & Wesson Brands beats Sturm, Ruger & Company, Inc. on 10 of the 19 factors compared between the two stocks.