Grabagun Digital (NYSE:PEW) versus Lowe’s Companies (NYSE:LOW) Financial Analysis

Grabagun Digital (NYSE:PEW) and Lowe’s Companies (NYSE:LOW) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

4.8% of Grabagun Digital shares are owned by institutional investors. Comparatively, 74.1% of Lowe’s Companies shares are owned by institutional investors. 27.8% of Grabagun Digital shares are owned by company insiders. Comparatively, 0.3% of Lowe’s Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Grabagun Digital and Lowe’s Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grabagun Digital	N/A	-5.89%	-4.94%
Lowe’s Companies	7.51%	-67.96%	13.31%

Volatility and Risk

Grabagun Digital has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Grabagun Digital and Lowe’s Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grabagun Digital	1	0	0	0	1.00
Lowe’s Companies	2	11	23	0	2.58

Lowe’s Companies has a consensus target price of $263.67, indicating a potential upside of 18.22%. Given Lowe’s Companies’ stronger consensus rating and higher possible upside, analysts clearly believe Lowe’s Companies is more favorable than Grabagun Digital.

Earnings & Valuation

This table compares Grabagun Digital and Lowe’s Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grabagun Digital	$99.05 million	0.79	-$2.51 million	($0.17)	-15.56
Lowe’s Companies	$86.29 billion	1.45	$6.65 billion	$11.83	18.85

Lowe’s Companies has higher revenue and earnings than Grabagun Digital. Grabagun Digital is trading at a lower price-to-earnings ratio than Lowe’s Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Lowe’s Companies beats Grabagun Digital on 12 of the 14 factors compared between the two stocks.

About Grabagun Digital

GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.

About Lowe’s Companies

Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.