Analyzing Sturm, Ruger & (RGR) & Black Diamond (CLAR)
Sturm, Ruger & (NYSE: RGR) and Black Diamond (NASDAQ:CLAR) 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 institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.
This table compares Sturm, Ruger & and Black Diamond’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sturm, Ruger &||11.07%||26.62%||20.51%|
Sturm, Ruger & pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. Black Diamond does not pay a dividend. Sturm, Ruger & pays out 26.9% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Sturm, Ruger & and Black Diamond, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sturm, Ruger &||0||2||1||0||2.33|
Sturm, Ruger & currently has a consensus price target of $58.00, indicating a potential upside of 17.53%. Black Diamond has a consensus price target of $8.00, indicating a potential upside of 8.84%. Given Sturm, Ruger &’s higher probable upside, research analysts plainly believe Sturm, Ruger & is more favorable than Black Diamond.
Earnings and Valuation
This table compares Sturm, Ruger & and Black Diamond’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Sturm, Ruger &||$664.33 million||1.29||$87.47 million||$3.42||14.43|
|Black Diamond||$148.19 million||1.49||-$8.97 million||($0.27)||-27.22|
Sturm, Ruger & has higher revenue and earnings than Black Diamond. Black Diamond is trading at a lower price-to-earnings ratio than Sturm, Ruger &, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
83.3% of Sturm, Ruger & shares are owned by institutional investors. Comparatively, 47.7% of Black Diamond shares are owned by institutional investors. 3.9% of Sturm, Ruger & shares are owned by company insiders. Comparatively, 46.8% of Black Diamond shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Sturm, Ruger & beats Black Diamond on 9 of the 13 factors compared between the two stocks.
About Sturm, Ruger &
Sturm, Ruger & Company, Inc. is engaged in the design, manufacture, and sale of firearms to domestic customers. The Company operates through two segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a range of federally licensed, independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding (MIM) parts. The Company’s design and manufacturing operations are located in the United States. The Company primarily offers products in three industry product categories: rifles, pistols, and revolvers. The Company’s firearms are sold through independent wholesale distributors, principally to the commercial sporting market. The Company manufactures firearm products under the Ruger name. The Company also manufactures and sells accessories and replacement parts for its firearms.
About Black Diamond
Clarus Corporation, formerly Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.
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