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

Revelyst (NYSE:GEAR) and Sturm, Ruger & Company, Inc. (NYSE:RGR) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Volatility and Risk

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

Insider & Institutional Ownership

90.5% of Revelyst shares are held by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. 0.9% of Revelyst shares are held by insiders. Comparatively, 3.5% of Sturm, Ruger & Company, Inc. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revelyst	$1.23 billion	0.96	-$5.51 million	($0.18)	-111.56
Sturm, Ruger & Company, Inc.	$543.77 million	1.10	$48.22 million	$1.73	20.63

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Revelyst and Sturm, Ruger & Company, Inc., as provided by MarketBeat.

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

Profitability

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

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

Summary

Sturm, Ruger & Company, Inc. 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 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.