Head-To-Head Review: Smith & Wesson Brands (NASDAQ:SWBI) and QuantaSing Group (NASDAQ:QSG)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for QuantaSing Group and Smith & Wesson Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantaSing Group	0	1	0	0	2.00
Smith & Wesson Brands	0	2	1	0	2.33

Smith & Wesson Brands has a consensus target price of $16.50, indicating a potential upside of 25.14%. Given Smith & Wesson Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Smith & Wesson Brands is more favorable than QuantaSing Group.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantaSing Group	$2.73 billion	0.03	$50.08 million	$0.90	2.07
Smith & Wesson Brands	$523.84 million	1.13	$18.48 million	$0.54	24.42

QuantaSing Group has higher revenue and earnings than Smith & Wesson Brands. QuantaSing Group 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuantaSing Group	13.13%	47.31%	21.93%
Smith & Wesson Brands	4.44%	6.60%	4.59%

Institutional & Insider Ownership

59.3% of Smith & Wesson Brands shares are owned by institutional investors. 2.3% of Smith & Wesson Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

QuantaSing Group has a beta of -0.98, indicating that its stock price is 198% less volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Summary

Smith & Wesson Brands beats QuantaSing Group on 8 of the 14 factors compared between the two stocks.

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.

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.