Comparing Sturm Ruger & Co (RGR) & Axon Enterprise (AAXN)

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

Profitability

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This table compares Sturm Ruger & Co and Axon Enterprise’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sturm Ruger & Co 9.98% 22.81% 17.95%
Axon Enterprise 1.59% 8.17% 4.17%

Valuation and Earnings

This table compares Sturm Ruger & Co and Axon Enterprise’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 & Co $522.26 million 1.83 $52.14 million $2.88 19.05
Axon Enterprise $343.80 million 6.66 $5.20 million $0.27 159.15

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

Insider and Institutional Ownership

88.5% of Sturm Ruger & Co shares are owned by institutional investors. Comparatively, 95.9% of Axon Enterprise shares are owned by institutional investors. 4.6% of Sturm Ruger & Co shares are owned by company insiders. Comparatively, 3.9% of Axon Enterprise shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sturm Ruger & Co and Axon Enterprise, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sturm Ruger & Co 0 2 1 0 2.33
Axon Enterprise 0 4 5 0 2.56

Sturm Ruger & Co presently has a consensus price target of $64.50, suggesting a potential upside of 17.59%. Axon Enterprise has a consensus price target of $37.17, suggesting a potential downside of 13.51%. Given Sturm Ruger & Co’s higher possible upside, research analysts clearly believe Sturm Ruger & Co is more favorable than Axon Enterprise.

Volatility and Risk

Sturm Ruger & Co has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, Axon Enterprise has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Dividends

Sturm Ruger & Co pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. Axon Enterprise does not pay a dividend. Sturm Ruger & Co pays out 31.9% of its earnings in the form of a dividend.

Summary

Sturm Ruger & Co beats Axon Enterprise on 9 of the 16 factors compared between the two stocks.

Sturm Ruger & Co Company Profile

Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms under the Ruger name and trademark in the United States. It operates in two segments, Firearms and Castings. The company offers single-shot, autoloading, bolt-action, and sporting rifles; rimfire and centerfire autoloading pistols; single-action and double-action revolvers; and firearms accessories and replacement parts. It also manufactures and sells steel investment castings and metal injection molding (MIM) parts. The company sells its firearm products through independent wholesale distributors principally to the commercial sporting market; and castings and MIM parts directly or through manufacturers' representatives. The company also exports its firearm products through a network of commercial distributors and directly to foreign customers comprising primarily of law enforcement agencies and foreign governments. Sturm, Ruger & Company, Inc. was founded in 1949 and is headquartered in Southport, Connecticut.

Axon Enterprise Company Profile

Axon Enterprise, Inc. develops, manufactures, and sells conducted electrical weapons (CEWs) worldwide. The company operates through two segments, TASER Weapons, and Software and Sensors. It offers TASER X26P and TASER X2 smart weapons for law enforcement; consumer CEWs; and replacement cartridges and consumables, as well as performance power magazines. The company also provides Axon Body 2; Axon Flex 2 that builds upon the Axon Flex camera system; Axon Fleet, an in-car video system; Axon Dock, a camera charging station; TASER Cam HD, a recording device; Axon Signal, a technology; and Signal Sidearm, a device compatible with firearm holsters. In addition, it offers Evidence.com, a cloud-based digital evidence management system that allows agencies to store data and enables new workflows for managing and sharing that data; Evidence Sync, a desktop-based application that enables evidence to be uploaded to Evidence.com; and Commander, an on-premise application that consolidates customer's digital evidence in one secure location. Further, the company provides Axon Citizen, a mobile application that offers a public safety portal, where community members can submit photos and videos of an incident; Axon Capture, a mobile application to allow officers to capture digital evidence from the field; Axon View, a mobile application to provide instant playback of unfolding events; and Axon Interview, a recording system designed for the interview room. Axon Enterprise, Inc. sells its products to military forces, private security, correctional facilities, and consumer personal protection markets, as well as to federal, state, and local law enforcement agencies through its direct sales force, distribution partners, online store, and third-party resellers. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. n April 2017. Axon Enterprise, Inc. was founded in 1993 and is headquartered in Scottsdale, Arizona.

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