Smith & Wesson Brands (NASDAQ:SWBI – Get Free Report) and Hasbro (NASDAQ:HAS – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Dividends
Smith & Wesson Brands pays an annual dividend of $0.52 per share and has a dividend yield of 3.7%. Hasbro pays an annual dividend of $2.80 per share and has a dividend yield of 3.0%. Smith & Wesson Brands pays out 130.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hasbro pays out 50.4% of its earnings in the form of a dividend. Smith & Wesson Brands has increased its dividend for 4 consecutive years. Smith & Wesson Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current recommendations for Smith & Wesson Brands and Hasbro, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith & Wesson Brands | 0 | 2 | 1 | 0 | 2.33 |
| Hasbro | 0 | 4 | 12 | 0 | 2.75 |
Risk & Volatility
Smith & Wesson Brands has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Hasbro has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.
Profitability
This table compares Smith & Wesson Brands and Hasbro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith & Wesson Brands | 3.53% | 5.01% | 3.41% |
| Hasbro | 15.97% | 141.11% | 14.72% |
Earnings and Valuation
This table compares Smith & Wesson Brands and Hasbro”s 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 | $523.84 million | 1.21 | $18.48 million | $0.40 | 35.25 |
| Hasbro | $4.70 billion | 2.81 | -$322.40 million | $5.56 | 16.82 |
Smith & Wesson Brands has higher earnings, but lower revenue than Hasbro. Hasbro 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.
Insider and Institutional Ownership
59.3% of Smith & Wesson Brands shares are owned by institutional investors. Comparatively, 91.8% of Hasbro shares are owned by institutional investors. 2.3% of Smith & Wesson Brands shares are owned by insiders. Comparatively, 0.7% of Hasbro shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Hasbro beats Smith & Wesson Brands on 10 of the 17 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 Hasbro
Hasbro, Inc., together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments. The Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. This segment also promotes its brands through the out-licensing of trademarks, characters, and other brand and intellectual property rights to third parties through the sale of branded consumer products, such as toys and apparel. Its toys and games include action figures, arts and crafts and creative play products, dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games, and other consumer products; and licensed products, such as apparel, publishing products, home goods and electronics, and toy products. The Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading cards, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, production, and sale of entertainment content, including film, television, children's programming, digital content, and live entertainment. The company sells its products to retailers, distributors, wholesalers, discount stores, specialty hobby stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as e-commerce retailers; and directly to customers through its e-commerce websites under the MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PEPPA PIG, and other brand names. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.
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