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 stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, media sentiment, institutional ownership and dividends.

Do analysts prefer SWBI or RGR?

Smith & Wesson Brands currently has a consensus price target of $12.00, suggesting a potential upside of 47.97%. Given Smith & Wesson Brands' stronger consensus rating and higher probable upside, research analysts clearly 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)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50
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 more risk & volatility, SWBI or RGR?

Smith & Wesson Brands has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500.

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%

Which has higher valuation and earnings, 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	0.75	$13.43M	$0.27	30.04
Sturm, Ruger & Company, Inc.	$535.64M	1.03	$30.56M	$0.31	110.32

Does the media favor SWBI or RGR?

In the previous week, Sturm, Ruger & Company, Inc. had 2 more articles in the media than Smith & Wesson Brands. MarketBeat recorded 5 mentions for Sturm, Ruger & Company, Inc. and 3 mentions for Smith & Wesson Brands. Sturm, Ruger & Company, Inc.'s average media sentiment score of 1.19 beat Smith & Wesson Brands' score of 0.89 indicating that Sturm, Ruger & Company, Inc. is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Smith & Wesson Brands	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Sturm, Ruger & Company, Inc.	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

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 6.4%. Sturm, Ruger & Company, Inc. pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. 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 232.3% 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 raised 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.

Do institutionals and insiders believe in SWBI or RGR?

59.3% of Smith & Wesson Brands shares are owned by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. 1.6% of Smith & Wesson Brands 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Sturm, Ruger & Company, Inc. beats Smith & Wesson Brands on 11 of the 19 factors compared between the two stocks.