TruGolf (NASDAQ:TRUG) versus Sturm, Ruger & Company, Inc. (NYSE:RGR) Critical Analysis

Sturm, Ruger & Company, Inc. (NYSE:RGRGet Free Report) and TruGolf (NASDAQ:TRUGGet Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sturm, Ruger & Company, Inc. 1 1 1 0 2.00
TruGolf 1 1 1 0 2.00

Sturm, Ruger & Company, Inc. currently has a consensus price target of $46.00, suggesting a potential upside of 19.17%. Given Sturm, Ruger & Company, Inc.’s higher probable upside, research analysts plainly believe Sturm, Ruger & Company, Inc. is more favorable than TruGolf.

Risk & Volatility

Sturm, Ruger & Company, Inc. has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, TruGolf has a beta of -1.12, meaning that its share price is 212% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sturm, Ruger & Company, Inc. and TruGolf”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sturm, Ruger & Company, Inc. $546.06 million 1.13 -$4.39 million $0.75 51.47
TruGolf $18.88 million 0.04 -$15.23 million ($10.82) -0.04

Sturm, Ruger & Company, Inc. has higher revenue and earnings than TruGolf. TruGolf 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.

Institutional and Insider Ownership

64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. Comparatively, 3.2% of TruGolf shares are held by institutional investors. 4.6% of Sturm, Ruger & Company, Inc. shares are held by company insiders. Comparatively, 5.8% of TruGolf shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Sturm, Ruger & Company, Inc. 2.11% 6.58% 5.35%
TruGolf -55.27% -132.15% -24.75%

Summary

Sturm, Ruger & Company, Inc. beats TruGolf on 11 of the 12 factors compared between the two stocks.

About Sturm, Ruger & Company, Inc.

(Get Free Report)

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 TruGolf

(Get Free Report)

TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.

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