Head to Head Contrast: Smith & Wesson Brands (NASDAQ:SWBI) & Massimo Group (NASDAQ:MAMO)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Smith & Wesson Brands and Massimo Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Wesson Brands	0	2	1	0	2.33
Massimo Group	0	0	0	0	0.00

Smith & Wesson Brands presently has a consensus target price of $12.00, suggesting a potential upside of 21.09%. Given Smith & Wesson Brands’ stronger consensus rating and higher probable upside, equities analysts plainly believe Smith & Wesson Brands is more favorable than Massimo Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith & Wesson Brands	2.34%	3.10%	2.00%
Massimo Group	-6.11%	-23.03%	-9.51%

Institutional & Insider Ownership

59.3% of Smith & Wesson Brands shares are owned by institutional investors. 1.6% of Smith & Wesson Brands shares are owned by company insiders. Comparatively, 78.0% of Massimo Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Smith & Wesson Brands has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Massimo Group has a beta of -0.2, meaning that its stock price is 120% less volatile than the S&P 500.

Earnings and Valuation

This table compares Smith & Wesson Brands and Massimo Group”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	$474.66 million	0.93	$13.43 million	$0.24	41.29
Massimo Group	$111.21 million	1.09	$1.76 million	($0.12)	-24.33

Smith & Wesson Brands has higher revenue and earnings than Massimo Group. Massimo Group 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.

Summary

Smith & Wesson Brands beats Massimo Group on 12 of the 14 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. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm’s brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech. The company was founded by Horace Smith and Daniel Baird Wesson in 1852 and is headquartered in Maryville, TN.

About Massimo Group

Massimo Group, through its subsidiaries, engages in the manufacturing and sale of utility terrain vehicles, all-terrain vehicles, and pontoon and tritoon boats. The company also offers motorcycles, scooters, golf carts, and go karts and balance bikes, as well as snow equipment. In addition, it provides accessories, including EV chargers, electric coolers, power stations, and portable solar panels. The company sells its products through a network of dealerships, distributors, and chain stores, as well as the e-commerce marketplace. Massimo Group was founded in 2009 and is based in Garland, Texas.