Smith & Wesson Brands (NASDAQ:SWBI – Get Free Report) and Newton Golf (NASDAQ:NWTG – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Risk and Volatility
Smith & Wesson Brands has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Newton Golf has a beta of 4.65, suggesting that its share price is 365% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Smith & Wesson Brands and Newton Golf, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Smith & Wesson Brands | 1 | 2 | 1 | 0 | 2.00 |
| Newton Golf | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Smith & Wesson Brands and Newton Golf’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% |
| Newton Golf | -205.92% | -570.38% | -164.24% |
Insider and Institutional Ownership
59.3% of Smith & Wesson Brands shares are held by institutional investors. Comparatively, 0.5% of Newton Golf shares are held by institutional investors. 1.6% of Smith & Wesson Brands shares are held by company insiders. Comparatively, 8.4% of Newton Golf shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Smith & Wesson Brands and Newton Golf”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Smith & Wesson Brands | $474.66 million | 0.94 | $13.43 million | $0.24 | 42.04 |
| Newton Golf | $3.44 million | 2.31 | -$11.75 million | ($111.71) | -0.02 |
Smith & Wesson Brands has higher revenue and earnings than Newton Golf. Newton Golf 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.
Summary
Smith & Wesson Brands beats Newton Golf on 11 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 Newton Golf
Sacks Parente Golf, Inc. (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States. We anticipate expanding into golf apparel and other golf related product lines to enhance our growth. Our future expansions may include broadening our offerings through mergers, acquisitions or internal developments of product lines that are complementary to our premium brand. Product Portfolio Characteristics We design, manufacture and sell technology-forward, high-quality golf equipment, which is comprised of putting instruments, golf shafts, golf grips and related product groups. We design our golf products to fit golfers of all skill levels, amateur and professional, and our products are designed with the goal of conforming to the Rules of Golf as published by the United States Golf Association (“USGA”) and the ruling authority (“The R&A”). Our Products Our equipment includes putting instruments, golf shafts and grips. Our putting instruments are generally made of steel, aluminum, titanium alloys, carbon fiber, tungsten, and various other materials, including our patented magnesium face plate technologies. All of our products are currently sold under the SPG brand, but we intend to private label and sell certain components to interested third parties. Our shaft and putter technology has been shown by The Golf Lab, a Canadian golf research and education provider, to improve players’ ability to make putts, feel of the putter head, stroke, face angle at impact, and consistency for distance control. Our management believes that our proprietary shaft designs can enhance the performance of players’ putters as well as drivers and other golf clubs. Further, our management believes that these innovative designs, along with our proprietary manufacturing techniques, create performance improvements over traditional golf shafts. We were formed in 2018 as Sacks Parente Golf Company, LLC, a Delaware limited liability company. On March 18th, 2022, we converted into a Delaware corporation named Sacks Parente Golf, Inc. Sacks Parente Golf, Inc. 551 Calle San Pablo Camarillo, CA.
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