Head to Head Comparison: Shimano (OTCMKTS:SMNNY) vs. Sturm, Ruger & Company, Inc. (NYSE:RGR)

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shimano	7.53%	4.23%	3.89%
Sturm, Ruger & Company, Inc.	1.07%	9.53%	7.98%

Dividends

Shimano pays an annual dividend of $0.14 per share and has a dividend yield of 1.2%. Sturm, Ruger & Company, Inc. pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. Shimano pays out 53.8% of its earnings in the form of a dividend. Sturm, Ruger & Company, Inc. pays out 206.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Shimano has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Shimano shares are owned by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. 4.6% of Sturm, Ruger & Company, Inc. shares are owned 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.

Valuation and Earnings

This table compares Shimano and Sturm, Ruger & Company, Inc.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$2.98 billion	3.32	$503.78 million	$0.26	43.46
Sturm, Ruger & Company, Inc.	$536.29 million	1.33	$30.56 million	$0.31	142.40

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

Summary

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

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

About Sturm, Ruger & Company, Inc.

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.