Smith & Wesson Brands (NASDAQ:SWBI) and Dewey Electronics (OTCMKTS:DEWY) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Risk and Volatility
Smith & Wesson Brands has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Dewey Electronics has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Smith & Wesson Brands and Dewey Electronics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Smith & Wesson Brands||0||1||2||0||2.67|
Smith & Wesson Brands presently has a consensus price target of $21.00, indicating a potential downside of 2.42%. Given Smith & Wesson Brands’ higher probable upside, equities analysts plainly believe Smith & Wesson Brands is more favorable than Dewey Electronics.
This table compares Smith & Wesson Brands and Dewey Electronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Smith & Wesson Brands||-9.03%||10.26%||5.76%|
Valuation & Earnings
This table compares Smith & Wesson Brands and Dewey Electronics’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Smith & Wesson Brands||$678.39 million||1.76||-$61.23 million||$0.82||26.24|
|Dewey Electronics||$5.69 million||0.69||$1.25 million||N/A||N/A|
Dewey Electronics has lower revenue, but higher earnings than Smith & Wesson Brands.
Insider and Institutional Ownership
67.0% of Smith & Wesson Brands shares are owned by institutional investors. 2.7% of Smith & Wesson Brands shares are owned by company insiders. Comparatively, 37.5% of Dewey Electronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Smith & Wesson Brands beats Dewey Electronics on 6 of the 11 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. It operates through the Firearms and Outdoor Products & Accessories segments. The Firearms segment comprises the manufacture of handguns, long guns, handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers. The Outdoor Products & Accessories segment engages in the distribution, manufacture, and design of reloading, gunsmithing, and gun cleaning supplies; stainless-steel cutting tools and accessories; flashlights; tree saws and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a full range of products for survival and emergency preparedness. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.
About Dewey Electronics
The Dewey Electronics Corporation designs and manufactures compact diesel power generators, hybrid power systems, and vehicle auxiliary power units for military markets worldwide. It offers 2kW military tactical generators, man-portable generators, and generator accessories; and non-power product lines, such as rodmeters, sea valves, hull liners, indicators/transmitters, pre-regulators, and MK-21 exploders. The company was founded in 1955 and is based in Oakland, New Jersey.
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