Sturm, Ruger & Company, Inc. (RGR) vs Smith & Wesson Brands, Inc. (SWBI)

Sturm, Ruger & Company, Inc. and Smith & Wesson Brands, Inc. are both Aerospace & Defense companies. Sturm, Ruger & Company, Inc. and Smith & Wesson Brands, Inc. are of similar size ($669.5M and $628.5M). Smith & Wesson Brands, Inc. trades at the lower P/E: 26.4× against 55.6×. Smith & Wesson Brands, Inc. grew revenue faster over the last twelve months: 17.0% against 7.64%. Smith & Wesson Brands, Inc. has the higher net margin (4.44% vs 2.11%) and the higher return on invested capital (5.42% vs 2.04%). Both pay a dividend; Smith & Wesson Brands, Inc. yields more (3.37% vs 2.86%). Across the 23 metrics below, Smith & Wesson Brands, Inc. leads on 18 and Sturm, Ruger & Company, Inc. on 5.

Valuation

Metric RGR SWBI Aerospace & Defense median
P/E 55.60 26.39 33.00
P/S 1.18 1.16 3.63
P/B 2.36 1.71 3.24
Price to free cash flow 21.12 7.77 34.01
EV/EBITDA 19.02 10.24 18.69
EV/Sales 0.98 1.24 3.94
Earnings yield 1.80% 3.79% 1.31%
Free cash flow yield 4.73% 12.86% 0.00%

Profitability

Metric RGR SWBI Aerospace & Defense median
Gross margin 18.70% 27.44% 25.48%
Operating margin 0.97% 6.60% 4.54%
Net margin 2.11% 4.44% 2.22%
Free cash flow margin 5.60% 14.92% 0.00%
Return on equity 4.20% 6.63% 6.43%
Return on assets 3.41% 4.54% 2.70%
Return on invested capital 2.04% 5.42% 1.56%

Growth

Metric RGR SWBI Aerospace & Defense median
Revenue growth (TTM) 7.64% 16.96% 18.43%
EPS growth (last fiscal year) (115.25%) 36.67% —
Revenue growth, 5-year CAGR (0.82%) (13.13%) 9.62%
Net income growth, 5-year CAGR 0.00% (40.70%) 0.00%

Health

Metric RGR SWBI Aerospace & Defense median
Debt to equity 0.00 0.19 0.24
Current ratio 3.35 3.62 2.72
Net debt to EBITDA (8.75) 0.30 1.12

Dividend

Metric RGR SWBI Aerospace & Defense median
Dividend yield 2.86% 3.37% 1.04%
Payout ratio 0.43 0.53 0.00

Size

Metric RGR SWBI Aerospace & Defense median
Market cap 669.49m 628.47m 2.52b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack