Winnebago Industries (WGO) vs. Brunswick Corporation (BC) Financial Analysis
Winnebago Industries (NYSE: WGO) and Brunswick Corporation (NYSE:BC) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.
This table compares Winnebago Industries and Brunswick Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Winnebago Industries and Brunswick Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Winnebago Industries currently has a consensus price target of $35.20, indicating a potential upside of 1.73%. Brunswick Corporation has a consensus price target of $65.45, indicating a potential upside of 27.47%. Given Brunswick Corporation’s higher possible upside, analysts plainly believe Brunswick Corporation is more favorable than Winnebago Industries.
Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.3%. Winnebago Industries pays out 20.0% of its earnings in the form of a dividend. Brunswick Corporation pays out 21.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Winnebago Industries has raised its dividend for 2 consecutive years and Brunswick Corporation has raised its dividend for 4 consecutive years. Brunswick Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Winnebago Industries and Brunswick Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Winnebago Industries||$1.36 billion||0.80||$115.70 million||$2.00||17.30|
|Brunswick Corporation||$4.69 billion||0.97||$602.40 million||$3.15||16.30|
Brunswick Corporation has higher revenue and earnings than Winnebago Industries. Brunswick Corporation is trading at a lower price-to-earnings ratio than Winnebago Industries, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
79.6% of Winnebago Industries shares are owned by institutional investors. Comparatively, 99.3% of Brunswick Corporation shares are owned by institutional investors. 1.5% of Winnebago Industries shares are owned by insiders. Comparatively, 1.0% of Brunswick Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Winnebago Industries has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Brunswick Corporation has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
Brunswick Corporation beats Winnebago Industries on 12 of the 17 factors compared between the two stocks.
Winnebago Industries Company Profile
Winnebago Industries, Inc. is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The Company offers products under categories, which include motorhomes, towables and other manufactured products. The Company produces all of its motorhomes in vertically integrated manufacturing facilities in Iowa and it produces all travel trailer and fifth wheel trailers in Indiana. The Company operates under the brand, Winnebago. The Company distributes its products primarily through independent dealers throughout the United States and Canada, who then retail the products to the end consumer.
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.
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