Smith & Wesson Brands (NASDAQ:SWBI – Get Free Report) and Massimo Group (NASDAQ:MAMO – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Volatility and Risk
Smith & Wesson Brands has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Massimo Group has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Smith & Wesson Brands and Massimo Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith & Wesson Brands | 1 | 2 | 1 | 0 | 2.00 |
| Massimo Group | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares Smith & Wesson Brands and Massimo Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smith & Wesson Brands | $471.40 million | 0.93 | $13.43 million | $0.24 | 41.29 |
| Massimo Group | $111.21 million | 1.09 | $1.76 million | ($0.12) | -24.17 |
Smith & Wesson Brands has higher revenue and earnings than Massimo Group. Massimo Group 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.
Institutional and Insider Ownership
59.3% of Smith & Wesson Brands shares are held by institutional investors. 1.6% of Smith & Wesson Brands shares are held by company insiders. Comparatively, 78.0% of Massimo Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Smith & Wesson Brands and Massimo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Smith & Wesson Brands | 2.34% | 3.10% | 2.00% |
| Massimo Group | -6.11% | -23.03% | -9.51% |
Summary
Smith & Wesson Brands beats Massimo Group on 12 of the 14 factors compared between the two stocks.
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 Massimo Group
Massimo Group, through its subsidiaries, engages in the manufacturing and sale of utility terrain vehicles, all-terrain vehicles, and pontoon and tritoon boats. The company also offers motorcycles, scooters, golf carts, and go karts and balance bikes, as well as snow equipment. In addition, it provides accessories, including EV chargers, electric coolers, power stations, and portable solar panels. The company sells its products through a network of dealerships, distributors, and chain stores, as well as the e-commerce marketplace. Massimo Group was founded in 2009 and is based in Garland, Texas.
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