Sturm, Ruger & (NYSE: RGR) and Black Diamond (NASDAQ:CLAR) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Valuation and Earnings

This table compares Sturm, Ruger & and Black Diamond’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sturm, Ruger & $664.33 million 1.33 $87.47 million $3.42 14.85
Black Diamond $148.19 million 1.43 -$8.97 million ($0.23) -30.65

Sturm, Ruger & has higher revenue and earnings than Black Diamond. Black Diamond is trading at a lower price-to-earnings ratio than Sturm, Ruger &, indicating that it is currently the more affordable of the two stocks.

Dividends

Sturm, Ruger & pays an annual dividend of $0.92 per share and has a dividend yield of 1.8%. Black Diamond does not pay a dividend. Sturm, Ruger & pays out 26.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

82.1% of Sturm, Ruger & shares are held by institutional investors. Comparatively, 47.7% of Black Diamond shares are held by institutional investors. 3.9% of Sturm, Ruger & shares are held by company insiders. Comparatively, 46.8% of Black Diamond shares are held 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.

Analyst Recommendations

This is a summary of current recommendations for Sturm, Ruger & and Black Diamond, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sturm, Ruger & 0 2 1 0 2.33
Black Diamond 0 1 0 0 2.00

Sturm, Ruger & currently has a consensus price target of $58.00, indicating a potential upside of 14.17%. Black Diamond has a consensus price target of $7.00, indicating a potential downside of 0.71%. Given Sturm, Ruger &’s stronger consensus rating and higher possible upside, research analysts clearly believe Sturm, Ruger & is more favorable than Black Diamond.

Profitability

This table compares Sturm, Ruger & and Black Diamond’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sturm, Ruger & 11.07% 26.62% 20.51%
Black Diamond -4.51% -0.72% -0.57%

Summary

Sturm, Ruger & beats Black Diamond on 11 of the 14 factors compared between the two stocks.

Sturm, Ruger & Company Profile

Sturm, Ruger & Company, Inc. is engaged in the design, manufacture, and sale of firearms to domestic customers. The Company operates through two segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a range of federally licensed, independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding (MIM) parts. The Company’s design and manufacturing operations are located in the United States. The Company primarily offers products in three industry product categories: rifles, pistols, and revolvers. The Company’s firearms are sold through independent wholesale distributors, principally to the commercial sporting market. The Company manufactures firearm products under the Ruger name. The Company also manufactures and sells accessories and replacement parts for its firearms.

Black Diamond Company Profile

Clarus Corporation, formerly Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

Receive News & Ratings for Sturm Ruger & Company Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sturm Ruger & Company Inc. and related companies with MarketBeat.com's FREE daily email newsletter.