Smith & Wesson Brands (NASDAQ:SWBI) and National Presto Industries (NYSE:NPK) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Insider and Institutional Ownership
67.0% of Smith & Wesson Brands shares are owned by institutional investors. Comparatively, 59.7% of National Presto Industries shares are owned by institutional investors. 2.7% of Smith & Wesson Brands shares are owned by insiders. Comparatively, 28.2% of National Presto Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for Smith & Wesson Brands and National Presto Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Smith & Wesson Brands||0||1||2||0||2.67|
|National Presto Industries||0||0||0||0||N/A|
Smith & Wesson Brands currently has a consensus price target of $21.00, indicating a potential upside of 4.63%. Given Smith & Wesson Brands’ higher possible upside, analysts clearly believe Smith & Wesson Brands is more favorable than National Presto Industries.
Earnings and Valuation
This table compares Smith & Wesson Brands and National Presto Industries’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Smith & Wesson Brands||$678.39 million||1.64||-$61.23 million||$0.82||24.48|
|National Presto Industries||$308.51 million||1.94||$42.22 million||N/A||N/A|
National Presto Industries has lower revenue, but higher earnings than Smith & Wesson Brands.
This table compares Smith & Wesson Brands and National Presto Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Smith & Wesson Brands||-9.03%||10.26%||5.76%|
|National Presto Industries||14.34%||12.25%||10.82%|
Risk & Volatility
Smith & Wesson Brands has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, National Presto Industries has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
National Presto Industries beats Smith & Wesson Brands on 6 of the 11 factors compared between the two stocks.
About Smith & Wesson Brands
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. It operates through the Firearms and Outdoor Products & Accessories segments. The Firearms segment comprises the manufacture of handguns, long guns, handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers. The Outdoor Products & Accessories segment engages in the distribution, manufacture, and design of reloading, gunsmithing, and gun cleaning supplies; stainless-steel cutting tools and accessories; flashlights; tree saws and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a full range of products for survival and emergency preparedness. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.
About National Presto Industries
National Presto Industries Inc. provides housewares and small appliances, and defense products primarily in North America. The company's Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; heat control single thermostatic control line of skillets, griddles, woks, and multi-purpose cookers under the Presto Control Master brand; slow cookers; deep fryers; air fryers; waffle makers; pizza ovens; slicer/shredders; electric heaters; hot air, oil, and microwave corn poppers; dehydrators; rice cookers; microwave bacon cookers; coffeemakers and coffeemaker accessories; electric tea kettles; electric knife sharpeners; various kitchen gadgets; and timers. This segment sells its products directly to retailers, as well as through independent distributors. Its Defense segment manufactures and sells 40mm ammunition, precision mechanical and electro-mechanical assemblies, and medium caliber cartridge cases; and detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. It also performs load, assemble, and pack operations on ordnance-related products. This segment primarily serves the United States Department of Defense (DOD) and DOD prime contractors. National Presto Industries, Inc. was founded in 1905 and is based in Eau Claire, Wisconsin.
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