Critical Analysis: Revelyst (NYSE:GEAR) & Sturm, Ruger & Company, Inc. (NYSE:RGR)

Revelyst (NYSE:GEAR) and Sturm, Ruger & Company, Inc. (NYSE:RGR) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Risk and Volatility

Revelyst has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Revelyst	-0.34%	19.53%	9.44%
Sturm, Ruger & Company, Inc.	5.83%	9.33%	7.91%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Revelyst and Sturm, Ruger & Company, Inc., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revelyst	0	0	0	0	0.00
Sturm, Ruger & Company, Inc.	0	0	0	1	4.00

Valuation & Earnings

This table compares Revelyst and Sturm, Ruger & Company, Inc.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revelyst	$1.23 billion	0.91	-$5.51 million	($0.18)	-105.83
Sturm, Ruger & Company, Inc.	$520.49 million	1.13	$48.22 million	$1.73	20.30

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

Institutional & Insider Ownership

90.5% of Revelyst shares are owned by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. 0.9% of Revelyst shares are owned by company insiders. Comparatively, 3.5% of Sturm, Ruger & Company, Inc. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sturm, Ruger & Company, Inc. beats Revelyst on 8 of the 13 factors compared between the two stocks.

About Revelyst

Vista Outdoor Inc. is the parent company of renowned brands which design, manufacture and market sporting and outdoor products. The company’s operating segment includes Outdoor Products and Sporting Products. Its brand portfolio includes Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Foresight Sports, Fiber Energy Products, Bell Helmets, Camp Chef, Giro, QuietKat, Stone Glacier, Federal Ammunition and more. The company principally serves outdoor enthusiasts, golfers, cyclists, backyard grillers, campers, hunters, recreational shooters, athletes, as well as law enforcement and military professionals. Vista Outdoor Inc. is based in ANOKA, Minn.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Company, Inc., together with its subsidiaries, designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. The company operates through two segments: Firearms and Castings. It provides single-shot, autoloading, bolt-action, and modern sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts, as well as manufactures lever-action rifles under the Marlin name and trademark. The company offers steel investment castings and metal injection molding parts. It sells its firearm products through independent wholesale distributors to commercial sporting market; and castings and MIM parts directly or through manufacturers’ representatives. It exports its firearm products through a network of selected commercial distributors and directly to foreign customers comprising primarily of law enforcement agencies and foreign governments. Sturm, Ruger & Company, Inc. was founded in 1949 and is based in Southport, Connecticut.