Sturm Ruger & Co (NYSE: RGR) and Vista Outdoor (NYSE:VSTO) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

88.1% of Sturm Ruger & Co shares are owned by institutional investors. 4.6% of Sturm Ruger & Co shares are owned by insiders. Comparatively, 1.5% of Vista Outdoor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Sturm Ruger & Co and Vista Outdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sturm Ruger & Co 9.98% 22.81% 17.95%
Vista Outdoor -1.88% 3.45% 1.49%

Volatility and Risk

Sturm Ruger & Co has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500. Comparatively, Vista Outdoor has a beta of -0.4, meaning that its stock price is 140% less volatile than the S&P 500.

Dividends

Sturm Ruger & Co pays an annual dividend of $0.92 per share and has a dividend yield of 1.6%. Vista Outdoor does not pay a dividend. Sturm Ruger & Co pays out 31.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for Sturm Ruger & Co and Vista Outdoor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sturm Ruger & Co 0 2 1 0 2.33
Vista Outdoor 1 5 1 0 2.00

Sturm Ruger & Co presently has a consensus price target of $64.50, suggesting a potential upside of 14.36%. Vista Outdoor has a consensus price target of $19.08, suggesting a potential upside of 14.41%. Given Vista Outdoor’s higher possible upside, analysts clearly believe Vista Outdoor is more favorable than Sturm Ruger & Co.

Valuation and Earnings

This table compares Sturm Ruger & Co and Vista Outdoor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sturm Ruger & Co $522.26 million 1.88 $52.14 million $2.88 19.58
Vista Outdoor $2.55 billion 0.38 -$274.45 million $1.90 8.78

Sturm Ruger & Co has higher earnings, but lower revenue than Vista Outdoor. Vista Outdoor is trading at a lower price-to-earnings ratio than Sturm Ruger & Co, indicating that it is currently the more affordable of the two stocks.

Summary

Sturm Ruger & Co beats Vista Outdoor on 11 of the 15 factors compared between the two stocks.

Sturm Ruger & Co Company Profile

Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. It operates in two segments, Firearms and Castings. The company offers single-shot, autoloading, bolt-action, and sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts. It also manufactures and sells steel investment castings and metal injection molding (MIM) parts. The company sells its firearm products through independent wholesale distributors principally to the commercial sporting market; and castings and MIM parts directly or through manufacturers' representatives. The company also exports its firearm products through a network of 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 headquartered in Southport, Connecticut.

Vista Outdoor Company Profile

Vista Outdoor Inc. designs, manufactures, and markets consumer products for outdoor sports and recreation markets worldwide. The company's Shooting Sports segment designs, develops, produces, and sources ammunition and firearms, such as centerfire ammunition, rimfire ammunition, shotshell ammunition, and reloading components for the hunting and sport shooting enthusiast markets, local law enforcement, the United States government, and international markets under the American Eagle, Blazer, CCI, Estate Cartridge, Federal Premium, Force on Force, Fusion, Independence, Savage Arms, Savage Range Systems, Speer, and Stevens brands. Its Outdoor Products segment offers helmets, goggles, and accessories for cycling, snow sports, action sports, and powersports; hunting arrows, game calls, hunting blinds, game cameras, and waterfowl decoys; camping products, such as outdoor cooking solutions; and water sports products consisting of stand up paddle boards. This segment also provides safety and protective eyewear, and fashion and sports eyewear; golf products, including laser rangefinders; hydration packs and water bottles; binoculars, riflescopes, and telescopes; reloading equipment, clay targets, and premium gun care products; and holsters, duty gear, bags and packs. It provides its products under the Alliant Powder, Bee Stinger, Bell, Blackburn, BLACKHAWK!, Bollé, Bushnell, Butler Creek, C-Preme, CamelBak, Camp Chef, Cébé, Champion Target, CoPilot, Eagle, Final Approach, Giro, Gold Tip, GunMate, Gunslick Pro, Hoppe's, Jimmy Styks, Krash, M-Pro 7, Millett, Night Optics, Outers, Primos, Raskullz, Redfield, Serengeti, Simmons, Tasco, Uncle Mike's, and Weaver brand names. The company sells its products to outdoor enthusiasts, hunters and recreational shooters, athletes, and law enforcement and military professionals through various mass, specialty, and independent retailers and distributors. Vista Outdoor Inc. was incorporated in 2014 and is headquartered in Farmington, Utah.

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