Sturm, Ruger & Company, Inc. (RGR) and Smith & Wesson Brands, Inc. (SWBI) are two prominent firearm manufacturing companies in the United States. RGR designs manufactures, and sells firearms and castings to domestic customers through federally licensed, independent wholesale distributors. It also manufactures and sells accessories and replacement parts for its firearms. In comparison, SWBI designs, manufactures, and sells firearms products and offers forging, machining, and precision plastic injection molding services. It serves gun enthusiasts, sportspeople, hunters, individuals desiring home and personal protection, and security agencies.
While the government is increasingly focusing on gun control and legislation, rising geopolitical tensions and increasing concerns of individuals over personal safety since the pandemic have boosted the demand for firearms and ammunition. The reintroduction of popular firearms and new, improved technologies should enable the industry to grow substantially. The global ammunition market is expected to grow at 4% CAGR to reach $11.85 billion by 2030. So, both RGR and SWBI should benefit.
