Smith & Wesson Brands (NASDAQ:SWBI) & Mastercraft Boat (NASDAQ:MCFT) Financial Contrast

Smith & Wesson Brands (NASDAQ:SWBI) and Mastercraft Boat (NASDAQ:MCFT) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and target prices for Smith & Wesson Brands and Mastercraft Boat, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith & Wesson Brands	0	2	1	0	2.33
Mastercraft Boat	0	6	0	0	2.00

Smith & Wesson Brands currently has a consensus price target of $16.50, suggesting a potential upside of 25.48%. Mastercraft Boat has a consensus price target of $25.00, suggesting a potential upside of 27.29%. Given Mastercraft Boat’s higher possible upside, analysts plainly believe Mastercraft Boat is more favorable than Smith & Wesson Brands.

Risk and Volatility

Smith & Wesson Brands has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Mastercraft Boat has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Smith & Wesson Brands and Mastercraft Boat”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith & Wesson Brands	$523.84 million	1.13	$18.48 million	$0.54	24.35
Mastercraft Boat	$348.90 million	0.92	$7.04 million	$0.68	28.88

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

Insider and Institutional Ownership

59.3% of Smith & Wesson Brands shares are held by institutional investors. Comparatively, 97.6% of Mastercraft Boat shares are held by institutional investors. 2.3% of Smith & Wesson Brands shares are held by company insiders. Comparatively, 2.5% of Mastercraft Boat shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smith & Wesson Brands	4.44%	6.60%	4.59%
Mastercraft Boat	-0.48%	13.93%	9.86%

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.

About Mastercraft Boat

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.