Thor Industries (NYSE: THO) and Vista Outdoor (NYSE:VSTO) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Dividends

Thor Industries pays an annual dividend of $1.32 per share and has a dividend yield of 1.1%. Vista Outdoor does not pay a dividend. Thor Industries pays out 20.6% of its earnings in the form of a dividend. Vista Outdoor has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Thor Industries and Vista Outdoor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thor Industries 1 3 8 0 2.58
Vista Outdoor 0 6 5 0 2.45

Thor Industries presently has a consensus target price of $111.30, suggesting a potential downside of 3.13%. Vista Outdoor has a consensus target price of $28.35, suggesting a potential upside of 23.26%. Given Vista Outdoor’s higher probable upside, analysts clearly believe Vista Outdoor is more favorable than Thor Industries.

Risk and Volatility

Thor Industries has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Vista Outdoor has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500.

Institutional and Insider Ownership

89.5% of Thor Industries shares are owned by institutional investors. Comparatively, 96.5% of Vista Outdoor shares are owned by institutional investors. 6.6% of Thor Industries shares are owned by insiders. Comparatively, 1.5% of Vista Outdoor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Thor Industries and Vista Outdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thor Industries 5.11% 24.83% 13.87%
Vista Outdoor -11.55% 7.02% 3.07%

Earnings and Valuation

This table compares Thor Industries and Vista Outdoor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Thor Industries $6.60 billion 0.92 $598.38 million $6.40 17.95
Vista Outdoor $2.49 billion 0.53 $280.08 million ($4.91) -4.68

Thor Industries has higher revenue and earnings than Vista Outdoor. Vista Outdoor is trading at a lower price-to-earnings ratio than Thor Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Thor Industries beats Vista Outdoor on 13 of the 17 factors compared between the two stocks.

About Thor Industries

Thor Industries, Inc. manufactures a range of recreational vehicles (RVs) in the United States and sells those vehicles primarily in the United States and Canada. The Company’s segments include towable recreational vehicles, which consists of the operations of Airstream, Inc. (Airstream) (towable); Heartland Recreational Vehicles, LLC (Heartland) (including Bison Coach, LLC (Bison), Cruiser RV, LLC (CRV) and DRV, LLC (DRV)); Jayco, Corp. (Jayco) (including Jayco towable, Starcraft and Highland Ridge), Keystone RV Company (Keystone) (including CrossRoads and Dutchmen) and K.Z., Inc. (KZ) (including Livin’ Lite RV, Inc. (Livin’ Lite)); motorized recreational vehicles, which consists of the operations of Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) and Thor Motor Coach, Inc. (Thor Motor Coach), and Other, which includes the operations of its subsidiary, Postle Operating, LLC (Postle).

About Vista Outdoor

Vista Outdoor Inc. is a designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets. The Company operates through two segments: Shooting Sports and Outdoor Products. Its Shooting Sports segment designs, develops, produces and sources ammunition and firearms for the hunting and sport shooting enthusiast markets, as well as ammunition for local law enforcement, the United States Government and international markets. Its Outdoor Products segment product lines include archery/hunting accessories, global eyewear and sport protection, golf, hydration products, optics, shooting accessories, tactical products and water sports. The Company serves the outdoor sports and recreation markets through a diverse portfolio of over 40 brands. It serves a range of end consumers, including outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals. It offers cooking solutions through Camp Chef brand.

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