RGR vs CODI

For growth investors, Compass Diversified (CODI) is the stronger pick with 4.

8% revenue growth year-over-year, versus 1. 9% for Sturm, Ruger & Company, Inc. (RGR). Analysts rate Sturm, Ruger & Company, Inc. (RGR) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Sturm, Ruger & Company, Inc.

(RGR) delivered a total return of -23. 4%, compared to -37. 0% for Compass Diversified (CODI). Over 10 years, the gap is even starker: CODI returned +52. 1% versus RGR's -0. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Sturm, Ruger & Company, Inc.

(RGR) is the lower-risk stock at 1. 00β versus Compass Diversified's 1. 09β — meaning CODI is approximately 9% more volatile than RGR relative to the S&P 500. On balance sheet safety, Sturm, Ruger & Company, Inc. (RGR) carries a lower debt/equity ratio of 1% versus 3% for Compass Diversified — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Compass Diversified (CODI) is pulling ahead at 4.

8% versus 1. 9% for Sturm, Ruger & Company, Inc. (RGR). On earnings-per-share growth, the picture is similar: Sturm, Ruger & Company, Inc. grew EPS -115. 3% year-over-year, compared to -1426. 1% for Compass Diversified. Over a 3-year CAGR, CODI leads at 2. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Sturm, Ruger & Company, Inc.

(RGR) is the more profitable company, earning -0. 8% net margin versus -12. 2% for Compass Diversified — meaning it keeps -0. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CODI leads at 2. 3% versus -2. 1% for RGR. At the gross margin level — before operating expenses — CODI leads at 38. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Sturm, Ruger & Company, Inc.

(RGR) trades at 21. 4x forward P/E versus 145. 3x for Compass Diversified — 123. 9x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Compass Diversified (CODI) offers the highest yield at 4. 3%, versus 1. 5% for Sturm, Ruger & Company, Inc. (RGR).

For long-horizon retirement investors, Sturm, Ruger & Company, Inc.

(RGR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 00), 1. 5% yield). Both have compounded well over 10 years (RGR: -0. 9%, CODI: +52. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: RGR is a small-cap quality compounder stock; CODI is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.