Financial Review: ATC Venture Group (OTCMKTS:ATCV) versus Sturm, Ruger & Company, Inc. (NYSE:RGR)

ATC Venture Group (OTCMKTS:ATCV) and Sturm, Ruger & Company, Inc. (NYSE:RGR) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares ATC Venture Group and Sturm, Ruger & Company, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATC Venture Group	N/A	N/A	N/A
Sturm, Ruger & Company, Inc.	-2.18%	5.96%	4.89%

Analyst Recommendations

This is a summary of current ratings for ATC Venture Group and Sturm, Ruger & Company, Inc., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATC Venture Group	0	0	0	0	0.00
Sturm, Ruger & Company, Inc.	1	1	1	0	2.00

Sturm, Ruger & Company, Inc. has a consensus target price of $46.00, indicating a potential upside of 22.02%. Given Sturm, Ruger & Company, Inc.’s stronger consensus rating and higher probable upside, analysts clearly believe Sturm, Ruger & Company, Inc. is more favorable than ATC Venture Group.

Risk and Volatility

ATC Venture Group has a beta of 8.36, meaning that its share price is 736% more volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Earnings & Valuation

This table compares ATC Venture Group and Sturm, Ruger & Company, Inc.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATC Venture Group	N/A	N/A	N/A	N/A	N/A
Sturm, Ruger & Company, Inc.	$546.06 million	1.10	-$4.39 million	($0.73)	-51.64

ATC Venture Group has higher earnings, but lower revenue than Sturm, Ruger & Company, Inc..

Insider and Institutional Ownership

64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. 49.9% of ATC Venture Group shares are held by insiders. Comparatively, 4.6% of Sturm, Ruger & Company, Inc. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Sturm, Ruger & Company, Inc. beats ATC Venture Group on 7 of the 10 factors compared between the two stocks.

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.

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.