Head-To-Head Review: Latham Group (NASDAQ:SWIM) vs. Sturm, Ruger & Company, Inc. (NYSE:RGR)

Latham Group (NASDAQ:SWIM – Get Free Report) and Sturm, Ruger & Company, Inc. (NYSE:RGR – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Latham Group and Sturm, Ruger & Company, Inc.’s net margins, return on equity and return on assets.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Latham Group and Sturm, Ruger & Company, Inc., as reported by MarketBeat.

Latham Group presently has a consensus price target of $7.83, suggesting a potential downside of 0.21%. Sturm, Ruger & Company, Inc. has a consensus price target of $46.00, suggesting a potential downside of 8.33%. Given Latham Group’s higher probable upside, equities analysts plainly believe Latham Group is more favorable than Sturm, Ruger & Company, Inc..

Valuation & Earnings

This table compares Latham Group and Sturm, Ruger & Company, Inc.”s revenue, earnings per share and valuation.

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

Volatility & Risk

Latham Group has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Institutional and Insider Ownership

84.0% of Latham Group shares are owned by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. 3.3% of Latham Group shares are owned by insiders. Comparatively, 4.6% of Sturm, Ruger & Company, Inc. shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Sturm, Ruger & Company, Inc. beats Latham Group on 7 of the 13 factors compared between the two stocks.

About Latham Group

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Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.

About Sturm, Ruger & Company, Inc.

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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.