Smith & Wesson Brands (NASDAQ:SWBI) versus YETI (NYSE:YETI) Financial Comparison

YETI (NYSE:YETI) and Smith & Wesson Brands (NASDAQ:SWBI) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Insider & Institutional Ownership

59.3% of Smith & Wesson Brands shares are held by institutional investors. 0.9% of YETI shares are held by insiders. Comparatively, 1.6% of Smith & Wesson Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares YETI and Smith & Wesson Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YETI	$1.83 billion	2.01	$175.69 million	$1.92	24.65
Smith & Wesson Brands	$474.66 million	1.09	$13.43 million	$0.19	61.47

YETI has higher revenue and earnings than Smith & Wesson Brands. YETI is trading at a lower price-to-earnings ratio than Smith & Wesson Brands, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

YETI has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares YETI and Smith & Wesson Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YETI	8.75%	23.62%	13.98%
Smith & Wesson Brands	1.89%	2.34%	1.53%

Analyst Ratings

This is a summary of current ratings and target prices for YETI and Smith & Wesson Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YETI	0	8	7	0	2.47
Smith & Wesson Brands	0	2	1	0	2.33

YETI presently has a consensus target price of $44.42, suggesting a potential downside of 6.17%. Smith & Wesson Brands has a consensus target price of $11.00, suggesting a potential downside of 5.82%. Given Smith & Wesson Brands’ higher probable upside, analysts plainly believe Smith & Wesson Brands is more favorable than YETI.

Summary

YETI beats Smith & Wesson Brands on 10 of the 14 factors compared between the two stocks.

About YETI

YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands. The company also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, mugs, tumblers, straw mugs and cups, bottles, jugs, and water bottles, as well as accessories comprising bottle straw and chug caps, lids, straw lids, color packs, tumbler handles, and jug mounts under the Rambler brand. In addition, it offers apparel and gear products, such as hats, shirts, bottle openers, and ice substitutes. The company sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through its Website, YETI.com. It operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. YETI Holdings, Inc. was founded in 2006 and is headquartered in Austin, Texas.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm’s brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech. The company was founded by Horace Smith and Daniel Baird Wesson in 1852 and is headquartered in Maryville, TN.