Head-To-Head Review: Sturm, Ruger & Company, Inc. (NYSE:RGR) versus Mastercraft Boat (NASDAQ:MCFT)

Sturm, Ruger & Company, Inc. (NYSE:RGR) and Mastercraft Boat (NASDAQ:MCFT) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

Sturm, Ruger & Company, Inc. has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Mastercraft Boat has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sturm, Ruger & Company, Inc. and Mastercraft Boat”s gross 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	1.15	-$4.39 million	($0.28)	-140.43
Mastercraft Boat	$284.20 million	1.21	$7.04 million	$0.96	21.92

Mastercraft Boat has lower revenue, but higher earnings than Sturm, Ruger & Company, Inc.. Sturm, Ruger & Company, Inc. is trading at a lower price-to-earnings ratio than Mastercraft Boat, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sturm, Ruger & Company, Inc. and Mastercraft Boat’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%
Mastercraft Boat	5.27%	9.51%	6.77%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sturm, Ruger & Company, Inc. and Mastercraft Boat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturm, Ruger & Company, Inc.	2	0	1	0	1.67
Mastercraft Boat	0	5	1	1	2.43

Sturm, Ruger & Company, Inc. currently has a consensus target price of $43.00, indicating a potential upside of 9.36%. Mastercraft Boat has a consensus target price of $23.60, indicating a potential upside of 12.14%. Given Mastercraft Boat’s stronger consensus rating and higher probable upside, analysts clearly believe Mastercraft Boat is more favorable than Sturm, Ruger & Company, Inc..

Institutional and Insider Ownership

64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. Comparatively, 97.6% of Mastercraft Boat shares are held by institutional investors. 4.6% of Sturm, Ruger & Company, Inc. shares are held by company insiders. Comparatively, 2.5% of Mastercraft Boat shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Mastercraft Boat beats Sturm, Ruger & Company, Inc. on 12 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 Mastercraft Boat

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.