Brunswick Corporation (NYSE: BC) and Polaris Industries (NYSE:PII) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Volatility & Risk

Brunswick Corporation has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, Polaris Industries has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Dividends

Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.2%. Polaris Industries pays an annual dividend of $2.32 per share and has a dividend yield of 2.6%. Brunswick Corporation pays out 21.0% of its earnings in the form of a dividend. Polaris Industries pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brunswick Corporation has increased its dividend for 4 consecutive years and Polaris Industries has increased its dividend for 5 consecutive years. Polaris Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Brunswick Corporation and Polaris Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick Corporation 0 3 8 0 2.73
Polaris Industries 2 11 3 0 2.06

Brunswick Corporation currently has a consensus target price of $65.30, indicating a potential upside of 17.38%. Polaris Industries has a consensus target price of $86.46, indicating a potential downside of 4.92%. Given Brunswick Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Brunswick Corporation is more favorable than Polaris Industries.

Valuation & Earnings

This table compares Brunswick Corporation and Polaris Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brunswick Corporation $4.69 billion 1.05 $602.40 million $3.15 17.66
Polaris Industries $5.00 billion 1.14 $526.01 million $2.39 38.05

Brunswick Corporation has higher revenue, but lower earnings than Polaris Industries. Brunswick Corporation is trading at a lower price-to-earnings ratio than Polaris Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Brunswick Corporation and Polaris Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brunswick Corporation 6.13% 23.35% 10.44%
Polaris Industries 3.13% 26.47% 7.80%

Insider & Institutional Ownership

99.3% of Brunswick Corporation shares are held by institutional investors. Comparatively, 93.7% of Polaris Industries shares are held by institutional investors. 1.0% of Brunswick Corporation shares are held by company insiders. Comparatively, 2.2% of Polaris Industries 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.

Summary

Brunswick Corporation beats Polaris Industries on 10 of the 17 factors compared between the two stocks.

Brunswick Corporation Company Profile

Brunswick Corporation is a designer, manufacturer and marketer of recreation products. The Company operates through three segments: Marine Engine, Boat and Fitness. The Company’s product includes marine engines, boats, fitness equipment and active recreation products. The Company’s engine-related products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems; and marine parts and accessories. Its boat offerings include: fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; utility boats; deck boats; inflatable boats; and heavy-gauge aluminum boats. Its fitness products include cardiovascular and strength training equipment for both the commercial and consumer markets. It also sells products for active aging, rehabilitation, productive well-being, a complete line of billiards tables and other game room tables and accessories.

Polaris Industries Company Profile

Polaris Industries Inc. designs, engineers and manufactures powersports vehicles, which include Off-Road Vehicles (ORV), including All-Terrain Vehicles (ATV) and side-by-side vehicles for recreational and utility use; Snowmobiles, Motorcycles and Global Adjacent Markets vehicles, including Work and Transportation and military vehicles. The Company’s segments include ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, and Other. Its ORVs includes the RZR sport side-by-side, the RANGER utility side-by-side, the GENERAL crossover side-by-side, the Sportsman ATV and the Polaris ACE. It produces a range of snowmobiles consisting of approximately 40 models. It offers a range of motorcycles under Indian motorcycles and Slingshot brands. The Global Adjacent Markets vehicles include low emission vehicles, light duty hauling, passenger vehicles and industrial vehicles. The Other segment includes business of TAP Automotive Holdings, LLC, a manufacturer of off-road Jeep and truck accessories.

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