Contrasting Smith & Wesson Brands (NASDAQ:SWBI) and Twin Vee PowerCats (NASDAQ:VEEE)

Twin Vee PowerCats (NASDAQ:VEEE) and Smith & Wesson Brands (NASDAQ:SWBI) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Twin Vee PowerCats and Smith & Wesson Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twin Vee PowerCats	$14.39 million	0.20	-$11.05 million	($8.05)	-0.24
Smith & Wesson Brands	$474.66 million	0.76	$13.43 million	$0.27	30.26

Smith & Wesson Brands has higher revenue and earnings than Twin Vee PowerCats. Twin Vee PowerCats 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Vee PowerCats	0	0	0	0	0.00
Smith & Wesson Brands	0	2	1	0	2.33

Smith & Wesson Brands has a consensus target price of $12.00, indicating a potential upside of 46.88%. Given Smith & Wesson Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Smith & Wesson Brands is more favorable than Twin Vee PowerCats.

Insider and Institutional Ownership

15.6% of Twin Vee PowerCats shares are held by institutional investors. Comparatively, 59.3% of Smith & Wesson Brands shares are held by institutional investors. 28.5% of Twin Vee PowerCats shares are held by company insiders. Comparatively, 1.6% of Smith & Wesson Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Twin Vee PowerCats	-96.11%	-57.79%	-44.62%
Smith & Wesson Brands	2.60%	3.71%	2.39%

Volatility and Risk

Twin Vee PowerCats has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Smith & Wesson Brands has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Summary

Smith & Wesson Brands beats Twin Vee PowerCats on 12 of the 14 factors compared between the two stocks.

About Twin Vee PowerCats

Twin Vee PowerCats Co. engages in the design, manufacture, and sale of recreational and commercial power catamaran boats. The firm is focused on designing and developing its products under the ELECTRA Power Sports brand. It operates through the following segments: Gas-Powered Boats, Electric Boat and Development, and Franchise. The Gas-Powered Boats segment manufactures boats that use fuel. The Electric Boat and Development segment designs fully electric boats through Forza X1 Inc. The Franchise segment deals with developing a standard product offering that is sold for franchise. The company was founded by Roger Dunshee in 1996 and is headquartered in Fort Pierce, FL.

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.