Dewey Electronics (OTCMKTS:DEWY) and Smith & Wesson Brands (NASDAQ:SWBI) are both small-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
This table compares Dewey Electronics and Smith & Wesson Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Smith & Wesson Brands||-9.03%||10.26%||5.76%|
This is a breakdown of recent ratings for Dewey Electronics and Smith & Wesson Brands, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Smith & Wesson Brands||0||1||2||0||2.67|
Smith & Wesson Brands has a consensus price target of $21.00, indicating a potential upside of 4.63%. Given Smith & Wesson Brands’ higher possible upside, analysts clearly believe Smith & Wesson Brands is more favorable than Dewey Electronics.
Insider & Institutional Ownership
67.0% of Smith & Wesson Brands shares are owned by institutional investors. 37.5% of Dewey Electronics shares are owned by company insiders. Comparatively, 2.7% of Smith & Wesson Brands 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.
Risk and Volatility
Dewey Electronics has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
Earnings and Valuation
This table compares Dewey Electronics and Smith & Wesson Brands’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dewey Electronics||$5.69 million||0.69||$1.25 million||N/A||N/A|
|Smith & Wesson Brands||$678.39 million||1.64||-$61.23 million||$0.82||24.48|
Dewey Electronics has higher earnings, but lower revenue than Smith & Wesson Brands.
Smith & Wesson Brands beats Dewey Electronics on 6 of the 11 factors compared between the two stocks.
About Dewey Electronics
The Dewey Electronics Corporation designs and manufactures compact diesel power generators, hybrid power systems, and vehicle auxiliary power units for military markets worldwide. It offers 2kW military tactical generators, man-portable generators, and generator accessories; and non-power product lines, such as rodmeters, sea valves, hull liners, indicators/transmitters, pre-regulators, and MK-21 exploders. The company was founded in 1955 and is based in Oakland, New Jersey.
About Smith & Wesson Brands
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. It operates through the Firearms and Outdoor Products & Accessories segments. The Firearms segment comprises the manufacture of handguns, long guns, handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers. The Outdoor Products & Accessories segment engages in the distribution, manufacture, and design of reloading, gunsmithing, and gun cleaning supplies; stainless-steel cutting tools and accessories; flashlights; tree saws and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a full range of products for survival and emergency preparedness. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.
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