LCI Industries (NYSE: LCII) and Brunswick (NYSE:BC) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Volatility and Risk

LCI Industries has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Brunswick has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Institutional and Insider Ownership

99.6% of LCI Industries shares are owned by institutional investors. Comparatively, 92.7% of Brunswick shares are owned by institutional investors. 3.6% of LCI Industries shares are owned by company insiders. Comparatively, 1.0% of Brunswick shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

LCI Industries pays an annual dividend of $2.20 per share and has a dividend yield of 1.7%. Brunswick pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. LCI Industries pays out 39.2% of its earnings in the form of a dividend. Brunswick pays out 24.5% 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. Brunswick has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for LCI Industries and Brunswick, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 1 0 3 0 2.50
Brunswick 0 3 12 0 2.80

LCI Industries currently has a consensus price target of $123.00, suggesting a potential downside of 3.79%. Brunswick has a consensus price target of $62.86, suggesting a potential upside of 13.07%. Given Brunswick’s stronger consensus rating and higher probable upside, analysts clearly believe Brunswick is more favorable than LCI Industries.

Profitability

This table compares LCI Industries and Brunswick’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LCI Industries 7.07% 23.60% 16.10%
Brunswick 5.93% 22.71% 10.27%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LCI Industries $1.68 billion 1.90 $129.67 million $5.61 22.79
Brunswick $4.49 billion 1.09 $276.00 million $3.10 17.93

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

Summary

LCI Industries beats Brunswick on 9 of the 17 factors compared between the two stocks.

LCI Industries Company Profile

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

Brunswick 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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