Contrasting Sturm, Ruger & Company, Inc. (NYSE:RGR) & Simulated Environment Concepts (OTCMKTS:SMEV)

Sturm, Ruger & Company, Inc. (NYSE:RGR) and Simulated Environment Concepts (OTCMKTS:SMEV) 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, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Sturm, Ruger & Company, Inc. and Simulated Environment Concepts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturm, Ruger & Company, Inc.	1	0	0	0	1.00
Simulated Environment Concepts	0	0	0	0	0.00

Volatility and Risk

Sturm, Ruger & Company, Inc. has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Simulated Environment Concepts has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Insider & Institutional Ownership

64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. Comparatively, 0.2% of Simulated Environment Concepts shares are held by institutional investors. 4.6% of Sturm, Ruger & Company, Inc. shares are held by company insiders. Comparatively, 62.6% of Simulated Environment Concepts shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Sturm, Ruger & Company, Inc. and Simulated Environment Concepts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sturm, Ruger & Company, Inc.	1.07%	9.53%	7.98%
Simulated Environment Concepts	N/A	N/A	N/A

Earnings & Valuation

This table compares Sturm, Ruger & Company, Inc. and Simulated Environment Concepts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturm, Ruger & Company, Inc.	$540.77 million	0.92	$30.56 million	$0.13	240.66
Simulated Environment Concepts	N/A	N/A	N/A	N/A	N/A

Sturm, Ruger & Company, Inc. has higher revenue and earnings than Simulated Environment Concepts.

Summary

Sturm, Ruger & Company, Inc. beats Simulated Environment Concepts on 6 of the 8 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 through 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 Simulated Environment Concepts

Simulated Environment Concepts, Inc. engages in the development and manufacture of medical, health, and wellness equipments in the United States and internationally. Its products include SpaCapsule, a robotic massage therapy system used for medical rehabilitation, relaxation, weight loss, slimming, cellulite management, and general wellness; and PTjetCapsule. The company also offers components, parts, accessories, and peripheral massage and health related items. Its products are used in various environments, such as corporate employee lounges, relaxation centers, gyms and health clubs, doctor's offices, hotels, tanning and beauty salons/spas, luxury accommodations, gulf clubs, ski lounges, shopping centers and malls, airports, cruise ships, luxury yachts, and homes. Simulated Environment Concepts, Inc. was founded in 1993 and is based in Miami, Florida.