Black Diamond (BDE) & Sturm, Ruger & (RGR) Critical Contrast

Black Diamond (NASDAQ: BDE) and Sturm, Ruger & (NYSE:RGR) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider & Institutional Ownership

44.7% of Black Diamond shares are held by institutional investors. Comparatively, 86.9% of Sturm, Ruger & shares are held by institutional investors. 33.6% of Black Diamond shares are held by insiders. Comparatively, 3.9% of Sturm, Ruger & shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Black Diamond and Sturm, Ruger &, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Diamond 0 1 2 0 2.67
Sturm, Ruger & 0 2 0 0 2.00

Black Diamond currently has a consensus price target of $7.50, suggesting a potential upside of 12.78%. Sturm, Ruger & has a consensus price target of $53.50, suggesting a potential upside of 8.63%. Given Black Diamond’s stronger consensus rating and higher possible upside, analysts plainly believe Black Diamond is more favorable than Sturm, Ruger &.

Dividends

Sturm, Ruger & pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. Black Diamond does not pay a dividend. Sturm, Ruger & pays out 23.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Black Diamond and Sturm, Ruger &’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Black Diamond N/A N/A N/A ($0.23) -28.91
Sturm, Ruger & $622.49 million 1.40 $149.13 million $3.92 12.56

Sturm, Ruger & has higher revenue and earnings than Black Diamond. Black Diamond is trading at a lower price-to-earnings ratio than Sturm, Ruger &, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Black Diamond and Sturm, Ruger &’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Diamond -4.51% -0.72% -0.57%
Sturm, Ruger & 11.74% 29.70% 22.42%

Summary

Sturm, Ruger & beats Black Diamond on 7 of the 12 factors compared between the two stocks.

Black Diamond Company Profile

Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

Sturm, Ruger & Company Profile

Sturm, Ruger & Company, Inc. is engaged in the design, manufacture, and sale of firearms to domestic customers. The Company operates through two segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a range of federally licensed, independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding (MIM) parts. The Company’s design and manufacturing operations are located in the United States. The Company primarily offers products in three industry product categories: rifles, pistols, and revolvers. The Company’s firearms are sold through independent wholesale distributors, principally to the commercial sporting market. The Company manufactures firearm products under the Ruger name. The Company also manufactures and sells accessories and replacement parts for its firearms.

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