National Presto Industries (NYSE: NPK) and Sturm Ruger & Co (NYSE:RGR) are both small-cap multi-sector conglomerates companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.
Risk and Volatility
National Presto Industries has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Sturm Ruger & Co has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500.
This table compares National Presto Industries and Sturm Ruger & Co’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Presto Industries||15.87%||14.85%||12.89%|
|Sturm Ruger & Co||9.98%||22.81%||17.95%|
Institutional & Insider Ownership
61.8% of National Presto Industries shares are owned by institutional investors. Comparatively, 88.5% of Sturm Ruger & Co shares are owned by institutional investors. 29.5% of National Presto Industries shares are owned by insiders. Comparatively, 4.6% of Sturm Ruger & Co shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Sturm Ruger & Co pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. National Presto Industries does not pay a dividend. Sturm Ruger & Co pays out 31.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings for National Presto Industries and Sturm Ruger & Co, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Presto Industries||0||0||0||0||N/A|
|Sturm Ruger & Co||0||2||1||0||2.33|
Sturm Ruger & Co has a consensus target price of $64.50, indicating a potential upside of 17.06%. Given Sturm Ruger & Co’s higher probable upside, analysts plainly believe Sturm Ruger & Co is more favorable than National Presto Industries.
Valuation and Earnings
This table compares National Presto Industries and Sturm Ruger & Co’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Presto Industries||$333.63 million||1.97||$52.95 million||N/A||N/A|
|Sturm Ruger & Co||$522.26 million||1.84||$52.14 million||$2.88||19.13|
National Presto Industries has higher earnings, but lower revenue than Sturm Ruger & Co.
Sturm Ruger & Co beats National Presto Industries on 8 of the 14 factors compared between the two stocks.
National Presto Industries Company Profile
National Presto Industries Inc. provides housewares and small appliances, and defense products primarily in North America. The company operates in two segments, Housewares/Small Appliance and Defense. The Housewares/Small Appliance segment designs, markets, and distributes housewares and small electrical appliances, including pressure cookers and canners; heat control single thermostatic control line of skillets, griddles, woks, and multi-purpose cookers under the Presto Control Master brand; slow cookers; deep fryers; air fryers; waffle makers; pizza ovens; slicer/shredders; electric heaters; hot air, oil, and microwave corn poppers; dehydrators; rice cookers; microwave bacon cookers; coffeemakers and coffeemaker accessories; electric tea kettles; electric knife sharpeners; various kitchen gadgets; and timers. This segment sells its products directly to retailers, as well as through independent distributors. The Defense segment manufactures and sells 40mm ammunition, precision mechanical and electro-mechanical assemblies, and medium caliber cartridge cases; less lethal products and support accessories; and detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. It also performs load, assemble, and pack operations on ordnance-related products; and provides training for the use of less lethal products. This segment primarily serves the United States Department of Defense (DOD) and DOD prime contractors. National Presto Industries, Inc. was founded in 1905 and is based in Eau Claire, Wisconsin.
Sturm Ruger & Co Company Profile
Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. It operates in two segments, Firearms and Castings. The company offers single-shot, autoloading, bolt-action, and sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts. It also manufactures and sells steel investment castings and metal injection molding (MIM) parts. The company sells its firearm products through independent wholesale distributors principally to the commercial sporting market; and castings and MIM parts directly or through manufacturers' representatives. The company also exports its firearm products through a network of commercial distributors and directly to foreign customers comprising primarily of law enforcement agencies and foreign governments. Sturm, Ruger & Company, Inc. was founded in 1949 and is headquartered in Southport, Connecticut.
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