Financial Comparison: Revelyst (NYSE:GEAR) vs. Sturm, Ruger & Company, Inc. (NYSE:RGR)

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 businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Risk and Volatility

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

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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations 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

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%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturm, Ruger & Company, Inc.	$520.49 million	1.13	$48.22 million	$1.73	20.19
Revelyst	$1.23 billion	0.91	-$5.51 million	($0.18)	-105.78

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.

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 & 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.

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.