Head to Head Analysis: Smith & Wesson Brands (NASDAQ:SWBI) & Revelyst (NYSE:GEAR)

Revelyst (NYSE:GEAR) and Smith & Wesson Brands (NASDAQ:SWBI) 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 institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional and Insider Ownership

90.5% of Revelyst shares are owned by institutional investors. Comparatively, 59.3% of Smith & Wesson Brands shares are owned by institutional investors. 0.9% of Revelyst 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Revelyst and Smith & Wesson Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revelyst	-0.34%	19.53%	9.44%
Smith & Wesson Brands	7.00%	8.78%	5.79%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Revelyst and Smith & Wesson Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revelyst	0	0	0	0	0.00
Smith & Wesson Brands	0	2	0	0	2.00

Smith & Wesson Brands has a consensus target price of $13.00, indicating a potential upside of 30.39%. Given Smith & Wesson Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Smith & Wesson Brands is more favorable than Revelyst.

Risk and Volatility

Revelyst has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares Revelyst and Smith & Wesson Brands”s gross revenue, earnings per share 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
Smith & Wesson Brands	$514.65 million	0.85	$39.61 million	$0.78	12.78

Smith & Wesson Brands has lower revenue, but higher earnings than Revelyst. Revelyst 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.

Summary

Smith & Wesson Brands 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 Smith & Wesson Brands

Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide. The company offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, bolt action rifles; handcuffs; suppressors; and other firearm-related products under the Smith & Wesson, M&P, and Gemtech brands. It also provides manufacturing services comprising forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brand names; and sells parts purchased through third parties. The company sells its products to firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement, security agencies and officers, and military agencies. It markets its products through independent dealers, retailers, in-store retails, and direct to consumers; print, broadcast, and digital advertising campaigns; social and electronic media; and in-store retail merchandising strategies. Smith & Wesson Brands, Inc. was founded in 1852 and is based in Springfield, Massachusetts.