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

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 6.0%. 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 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 risk and volatility, RGR or SWBI?

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

Do analysts rate RGR or SWBI?

Smith & Wesson Brands has a consensus target price of $12.00, indicating a potential upside of 39.53%. Given Smith & Wesson Brands' stronger consensus rating and higher probable upside, 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
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 favor RGR or SWBI?

In the previous week, Sturm, Ruger & Company, Inc. and Sturm, Ruger & Company, Inc. both had 1 articles in the media. Smith & Wesson Brands' average media sentiment score of 1.54 beat Sturm, Ruger & Company, Inc.'s score of 1.28 indicating that Smith & Wesson Brands is being referred to more favorably in the news media.

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

Which has better valuation & earnings, 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	1.12	$30.56M	$1.83	19.80
Smith & Wesson Brands	$474.66M	0.80	$13.43M	$0.27	31.85

Do institutionals and insiders hold more shares of 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 is poised for long-term growth.

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%

Summary

Sturm, Ruger & Company, Inc. beats Smith & Wesson Brands on 10 of the 18 factors compared between the two stocks.