Comparing Smith & Wesson Brands (NASDAQ:SWBI) & YETI (NYSE:YETI)

Smith & Wesson Brands (NASDAQ:SWBI) and YETI (NYSE:YETI) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

59.3% of Smith & Wesson Brands shares are held by institutional investors. 1.6% of Smith & Wesson Brands shares are held by insiders. Comparatively, 0.9% of YETI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Smith & Wesson Brands and YETI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith & Wesson Brands	1.89%	2.34%	1.53%
YETI	8.75%	23.62%	13.98%

Risk & Volatility

Smith & Wesson Brands has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, YETI has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Earnings & Valuation

This table compares Smith & Wesson Brands and YETI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Wesson Brands	$466.40 million	1.12	$13.43 million	$0.19	61.84
YETI	$1.83 billion	2.04	$175.69 million	$1.92	25.03

YETI has higher revenue and earnings than Smith & Wesson Brands. YETI is trading at a lower price-to-earnings ratio than Smith & Wesson Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Smith & Wesson Brands and YETI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Wesson Brands	0	2	1	0	2.33
YETI	0	8	7	0	2.47

Smith & Wesson Brands presently has a consensus target price of $11.00, indicating a potential downside of 6.38%. YETI has a consensus target price of $44.42, indicating a potential downside of 7.57%. Given Smith & Wesson Brands’ higher probable upside, analysts clearly believe Smith & Wesson Brands is more favorable than YETI.

Summary

YETI beats Smith & Wesson Brands on 10 of the 14 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. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm’s brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech. The company was founded by Horace Smith and Daniel Baird Wesson in 1852 and is headquartered in Maryville, TN.

About YETI

YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands. The company also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, mugs, tumblers, straw mugs and cups, bottles, jugs, and water bottles, as well as accessories comprising bottle straw and chug caps, lids, straw lids, color packs, tumbler handles, and jug mounts under the Rambler brand. In addition, it offers apparel and gear products, such as hats, shirts, bottle openers, and ice substitutes. The company sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through its Website, YETI.com. It operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. YETI Holdings, Inc. was founded in 2006 and is headquartered in Austin, Texas.