Contrasting Revelyst (NYSE:GEAR) and Smith & Wesson Brands (NASDAQ:SWBI)

Smith & Wesson Brands (NASDAQ:SWBI) and Revelyst (NYSE:GEAR) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

59.3% of Smith & Wesson Brands shares are held by institutional investors. Comparatively, 90.5% of Revelyst shares are held by institutional investors. 1.3% of Smith & Wesson Brands shares are held by insiders. Comparatively, 0.9% of Revelyst shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Smith & Wesson Brands has a beta of 1.02, indicating that its share price is 2% more 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.

Earnings and Valuation

This table compares Smith & Wesson Brands and Revelyst”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Wesson Brands	$514.65 million	0.89	$39.61 million	$0.78	13.41
Revelyst	$1.23 billion	0.96	-$5.51 million	($0.18)	-111.56

Smith & Wesson Brands has higher earnings, but lower revenue than Revelyst. Revelyst is trading at a lower price-to-earnings ratio than Smith & Wesson Brands, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Smith & Wesson Brands and Revelyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith & Wesson Brands	7.00%	8.78%	5.79%
Revelyst	-0.34%	19.53%	9.44%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Smith & Wesson Brands and Revelyst, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Wesson Brands	0	2	0	0	2.00
Revelyst	0	0	0	0	0.00

Smith & Wesson Brands presently has a consensus target price of $13.00, suggesting a potential upside of 24.28%. Given Smith & Wesson Brands’ stronger consensus rating and higher possible upside, research analysts clearly believe Smith & Wesson Brands is more favorable than Revelyst.

Summary

Smith & Wesson Brands beats Revelyst on 8 of the 13 factors compared between the two stocks.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide. The company offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, bolt action rifles; handcuffs; suppressors; and other firearm-related products under the Smith & Wesson, M&P, and Gemtech brands. It also provides manufacturing services comprising forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brand names; and sells parts purchased through third parties. The company sells its products to firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement, security agencies and officers, and military agencies. It markets its products through independent dealers, retailers, in-store retails, and direct to consumers; print, broadcast, and digital advertising campaigns; social and electronic media; and in-store retail merchandising strategies. Smith & Wesson Brands, Inc. was founded in 1852 and is based in Springfield, Massachusetts.

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.