Clarus (NASDAQ: CLAR) and Sturm, Ruger & (NYSE:RGR) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Insider & Institutional Ownership
47.7% of Clarus shares are owned by institutional investors. Comparatively, 83.3% of Sturm, Ruger & shares are owned by institutional investors. 46.8% of Clarus shares are owned by company insiders. Comparatively, 3.9% of Sturm, Ruger & shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Clarus and Sturm, Ruger &, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sturm, Ruger &||0||2||1||0||2.33|
Clarus presently has a consensus price target of $8.00, suggesting a potential upside of 8.84%. Sturm, Ruger & has a consensus price target of $58.00, suggesting a potential upside of 17.53%. Given Sturm, Ruger &’s higher possible upside, analysts plainly believe Sturm, Ruger & is more favorable than Clarus.
Sturm, Ruger & pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. Clarus does not pay a dividend. Sturm, Ruger & pays out 26.9% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Clarus and Sturm, Ruger &’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Clarus||$148.19 million||1.49||-$8.97 million||($0.27)||-27.22|
|Sturm, Ruger &||$664.33 million||1.29||$87.47 million||$3.42||14.43|
Sturm, Ruger & has higher revenue and earnings than Clarus. Clarus is trading at a lower price-to-earnings ratio than Sturm, Ruger &, indicating that it is currently the more affordable of the two stocks.
This table compares Clarus and Sturm, Ruger &’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sturm, Ruger &||11.07%||26.62%||20.51%|
Sturm, Ruger & beats Clarus on 9 of the 13 factors compared between the two stocks.
Clarus Corporation, formerly 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.
About Sturm, Ruger &
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.
Receive News & Ratings for Clarus Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Clarus Co. and related companies with MarketBeat.com's FREE daily email newsletter.