Sturm, Ruger & Company, Inc. (NYSE:RGR – Get Free Report) and Leatt (OTCMKTS:LEAT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Profitability
This table compares Sturm, Ruger & Company, Inc. and Leatt’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sturm, Ruger & Company, Inc. | -0.80% | 6.93% | 5.76% |
| Leatt | 4.12% | 5.87% | 4.97% |
Valuation & Earnings
This table compares Sturm, Ruger & Company, Inc. and Leatt”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sturm, Ruger & Company, Inc. | $546.06 million | 1.11 | $30.56 million | ($0.28) | -136.00 |
| Leatt | $44.03 million | 1.26 | -$2.20 million | $0.36 | 24.79 |
Sturm, Ruger & Company, Inc. has higher revenue and earnings than Leatt. Sturm, Ruger & Company, Inc. is trading at a lower price-to-earnings ratio than Leatt, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Sturm, Ruger & Company, Inc. has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Leatt has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Institutional and Insider Ownership
64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. Comparatively, 0.6% of Leatt shares are held by institutional investors. 4.6% of Sturm, Ruger & Company, Inc. shares are held by company insiders. Comparatively, 80.0% of Leatt shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and target prices for Sturm, Ruger & Company, Inc. and Leatt, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sturm, Ruger & Company, Inc. | 1 | 0 | 1 | 0 | 2.00 |
| Leatt | 0 | 0 | 0 | 0 | 0.00 |
Sturm, Ruger & Company, Inc. currently has a consensus target price of $43.00, suggesting a potential upside of 12.92%. Given Sturm, Ruger & Company, Inc.’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Sturm, Ruger & Company, Inc. is more favorable than Leatt.
Summary
Sturm, Ruger & Company, Inc. beats Leatt on 8 of the 14 factors compared between the two stocks.
About Sturm, Ruger & Company, Inc.
Sturm, Ruger & Co., Inc. engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates through the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors. The Castings segment offers steel investment castings and metal injection molding parts. The company was founded by William B. Ruger in 1949 and is headquartered in Southport, CT.
About Leatt
Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor products, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. In addition, the company offers other products, parts, and accessories, such as goggles; toolbelt, duffel, gear, helmet bags, hats, and hydration kits; casual clothing, caps, and sunglasses; and apparel that comprises suits, jackets, jerseys, pants, shorts, socks, and gloves, as well as aftermarket support products. Further, it acts as the original equipment manufacturer for personal protective equipment sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs. It sells its products to customers through a network of distributors and retailers; and direct to end consumers through digital channels and online store at leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. The company was founded in 2001 and is headquartered in Durbanville, South Africa.
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