Sturm, Ruger & Company, Inc. (NYSE:RGR) & Peloton Interactive (NASDAQ:PTON) Head-To-Head Survey

Sturm, Ruger & Company, Inc. (NYSE:RGR) and Peloton Interactive (NASDAQ:PTON) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sturm, Ruger & Company, Inc. and Peloton Interactive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturm, Ruger & Company, Inc.	1	0	0	0	1.00
Peloton Interactive	1	9	8	1	2.47

Peloton Interactive has a consensus target price of $9.36, indicating a potential upside of 24.76%. Given Peloton Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe Peloton Interactive is more favorable than Sturm, Ruger & Company, Inc..

Profitability

This table compares Sturm, Ruger & Company, Inc. and Peloton Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sturm, Ruger & Company, Inc.	1.07%	9.53%	7.98%
Peloton Interactive	-4.78%	N/A	-5.63%

Risk and Volatility

Sturm, Ruger & Company, Inc. has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sturm, Ruger & Company, Inc. and Peloton Interactive”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturm, Ruger & Company, Inc.	$535.64 million	1.34	$30.56 million	$0.31	143.71
Peloton Interactive	$2.49 billion	1.23	-$118.90 million	($0.31)	-24.19

Sturm, Ruger & Company, Inc. has higher earnings, but lower revenue than Peloton Interactive. Peloton Interactive is trading at a lower price-to-earnings ratio than Sturm, Ruger & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are owned by institutional investors. 4.6% of Sturm, Ruger & Company, Inc. shares are owned by company insiders. Comparatively, 1.3% of Peloton Interactive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Sturm, Ruger & Company, Inc. beats Peloton Interactive on 8 of the 15 factors compared between the two stocks.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Co., Inc. engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates through the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors. The Castings segment offers steel investment castings and metal injection molding parts. The company was founded by William B. Ruger in 1949 and is headquartered in Southport, CT.

About Peloton Interactive

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.