Contrasting Smith & Wesson Brands (NASDAQ:SWBI) and ATC Venture Group (OTCMKTS:ATCV)

Smith & Wesson Brands (NASDAQ:SWBI) and ATC Venture Group (OTCMKTS:ATCV) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Volatility & Risk

Smith & Wesson Brands has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, ATC Venture Group has a beta of 7.9, indicating that its stock price is 690% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Smith & Wesson Brands and ATC Venture Group, as reported by MarketBeat.

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

Smith & Wesson Brands presently has a consensus target price of $11.00, indicating a potential upside of 10.89%. Given Smith & Wesson Brands’ stronger consensus rating and higher possible upside, equities analysts clearly believe Smith & Wesson Brands is more favorable than ATC Venture Group.

Earnings and Valuation

This table compares Smith & Wesson Brands and ATC Venture Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Wesson Brands	$466.40 million	0.95	$13.43 million	$0.19	52.21
ATC Venture Group	N/A	N/A	N/A	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith & Wesson Brands	1.89%	2.34%	1.53%
ATC Venture Group	N/A	N/A	N/A

Institutional and Insider Ownership

59.3% of Smith & Wesson Brands shares are owned by institutional investors. 1.6% of Smith & Wesson Brands shares are owned by insiders. Comparatively, 49.9% of ATC Venture Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Smith & Wesson Brands beats ATC Venture Group on 8 of the 10 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 ATC Venture Group

ATC Venture Group Inc., through its subsidiary, Simonsen Iron Works Inc., engages in the design, manufacture, and assembly of an array of parts for original equipment manufacturers and other customers. The company was formerly known as Cycle Country Accessories Corp. and changed its name to ATC Venture Group Inc. in January 2012. ATC Venture Group Inc. was incorporated in 1906 and is based in Minnetonka, Minnesota.