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 ($790.9M and $772.0M). Smith & Wesson Brands, Inc. trades at the lower P/E: 26.4× against 47.8×. Smith & Wesson Brands, Inc. grew revenue faster over the last twelve months: 17.0% against 10.6%. Smith & Wesson Brands, Inc. has the higher net margin (4.44% vs 2.74%) and the higher return on invested capital (5.42% vs 4.91%). Both pay a dividend; Smith & Wesson Brands, Inc. yields more (3.64% vs 0.89%). 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 47.79 26.43 28.48
P/S 1.31 1.16 2.95
P/B 2.68 1.71 2.68
Price to free cash flow 62.24 7.79 31.70
EV/EBITDA 17.52 11.34 16.85
EV/Sales 1.14 1.38 2.74
Earnings yield 2.09% 3.78% 0.89%
Free cash flow yield 1.61% 12.84% 0.00%

Profitability

Metric RGR SWBI Aerospace & Defense median
Gross margin 19.95% 27.44% 26.41%
Operating margin 2.52% 6.60% 3.69%
Net margin 2.74% 4.44% 2.74%
Free cash flow margin 2.11% 14.92% 0.00%
Return on equity 5.73% 6.63% 4.44%
Return on assets 4.53% 4.54% 1.90%
Return on invested capital 4.91% 5.42% 0.26%

Growth

Metric RGR SWBI Aerospace & Defense median
Revenue growth (TTM) 10.60% 16.96% 18.03%
EPS growth (last fiscal year) (115.25%) 36.67% 24.80%
Revenue growth, 5-year CAGR (0.82%) (13.13%) 9.73%
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 0.20
Current ratio 3.02 3.62 2.85
Net debt to EBITDA (8.75) 0.30 1.29

Dividend

Metric RGR SWBI Aerospace & Defense median
Dividend yield 0.89% 3.64% 0.91%
Payout ratio 0.44 0.96 0.30

Size

Metric RGR SWBI Aerospace & Defense median
Market cap 790.92m 771.97m 1.78b

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