Contrasting Smith & Wesson Brands (NASDAQ:SWBI) & Sportradar Group (NASDAQ:SRAD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sportradar Group	9.35%	11.74%	4.67%
Smith & Wesson Brands	2.34%	3.10%	2.00%

Volatility and Risk

Sportradar Group has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares Sportradar 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
Sportradar Group	$1.23 billion	5.44	$36.95 million	$0.32	69.78
Smith & Wesson Brands	$471.40 million	0.80	$13.43 million	$0.24	35.29

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

Insider and Institutional Ownership

59.3% of Smith & Wesson Brands shares are held by institutional investors. 85.0% of Sportradar Group shares are held by insiders. Comparatively, 1.6% of Smith & Wesson Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Sportradar Group and Smith & Wesson Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportradar Group	1	4	14	1	2.75
Smith & Wesson Brands	1	2	1	0	2.00

Sportradar Group presently has a consensus target price of $31.88, suggesting a potential upside of 42.78%. Smith & Wesson Brands has a consensus target price of $12.00, suggesting a potential upside of 41.68%. Given Sportradar Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Sportradar Group is more favorable than Smith & Wesson Brands.

Summary

Sportradar Group beats Smith & Wesson Brands on 14 of the 15 factors compared between the two stocks.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.

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.