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

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

Institutional & Insider Ownership

64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. Comparatively, 90.5% of Revelyst shares are owned by institutional investors. 3.5% of Sturm, Ruger & Company, Inc. shares are owned by company insiders. Comparatively, 0.9% of Revelyst 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.

Risk and Volatility

Sturm, Ruger & Company, Inc. has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Revelyst has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturm, Ruger & Company, Inc.	$520.49 million	1.12	$48.22 million	$1.73	20.12
Revelyst	$1.23 billion	0.96	-$5.51 million	($0.18)	-111.56

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

Profitability

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

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

Summary

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

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Co., Inc. engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates under the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors. The Castings segment offers steel investment castings and metal injection molding parts. The company was founded by William B. Ruger in 1949 and is headquartered in Southport, CT.

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.