Smith & Wesson Brands (SWBI) Competitors

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

Which has stronger earnings & valuation, RGR or SWBI?

Sturm, Ruger & Company, Inc. has higher revenue and earnings than Smith & Wesson Brands. Sturm, Ruger & Company, Inc. is trading at a lower price-to-earnings ratio than Smith & Wesson Brands, 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
Sturm, Ruger & Company, Inc.	$535.64M	1.13	$30.56M	$1.83	19.94
Smith & Wesson Brands	$474.66M	0.83	$13.43M	$0.27	33.35

Do analysts prefer RGR or SWBI?

Smith & Wesson Brands has a consensus target price of $12.00, suggesting a potential upside of 33.26%. Given Smith & Wesson Brands' stronger consensus rating and higher probable upside, 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
Sturm, Ruger & Company, Inc.	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
Smith & Wesson Brands	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50

Does the media refer more to RGR or SWBI?

In the previous week, Sturm, Ruger & Company, Inc. had 3 more articles in the media than Smith & Wesson Brands. MarketBeat recorded 4 mentions for Sturm, Ruger & Company, Inc. and 1 mentions for Smith & Wesson Brands. Sturm, Ruger & Company, Inc.'s average media sentiment score of 0.63 beat Smith & Wesson Brands' score of -0.20 indicating that Sturm, Ruger & Company, Inc. is being referred to more favorably in the media.

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

Which has more risk and volatility, RGR or SWBI?

Sturm, Ruger & Company, Inc. has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Is RGR or SWBI more profitable?

Sturm, Ruger & Company, Inc. has a net margin of 5.84% compared to Smith & Wesson Brands' net margin of 2.60%. Sturm, Ruger & Company, Inc.'s return on equity of 9.78% beat Smith & Wesson Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Sturm, Ruger & Company, Inc.	5.84%	9.78%	8.26%
Smith & Wesson Brands	2.60%	3.71%	2.39%

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

64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. Comparatively, 59.3% of Smith & Wesson Brands shares are owned by institutional investors. 4.6% of Sturm, Ruger & Company, Inc. shares are owned by company insiders. Comparatively, 1.3% of Smith & Wesson Brands 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.

Is RGR or SWBI a better dividend stock?

Sturm, Ruger & Company, Inc. pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. Smith & Wesson Brands pays an annual dividend of $0.52 per share and has a dividend yield of 5.8%. Sturm, Ruger & Company, Inc. pays out 39.3% of its earnings in the form of a dividend. 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. 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.

Summary

Sturm, Ruger & Company, Inc. beats Smith & Wesson Brands on 12 of the 19 factors compared between the two stocks.