Head to Head Analysis: Workhorse Group (NASDAQ:WKHS) and BRP (NASDAQ:DOOO)

BRP (NASDAQ:DOOOGet Free Report) and Workhorse Group (NASDAQ:WKHSGet Free Report) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares BRP and Workhorse Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BRP -0.34% 61.26% 4.21%
Workhorse Group -606.64% -232.69% -71.18%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BRP and Workhorse Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRP 1 6 8 3 2.72
Workhorse Group 1 0 0 0 1.00

BRP currently has a consensus target price of $79.60, indicating a potential upside of 12.48%. Given BRP’s stronger consensus rating and higher probable upside, research analysts clearly believe BRP is more favorable than Workhorse Group.

Institutional & Insider Ownership

16.0% of Workhorse Group shares are owned by institutional investors. 1.9% of Workhorse Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares BRP and Workhorse Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BRP $5.44 billion 0.95 -$154.60 million ($0.24) -294.88
Workhorse Group $6.62 million 3.25 -$101.79 million ($7.16) -0.13

Workhorse Group has lower revenue, but higher earnings than BRP. BRP is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

BRP has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.32, suggesting that its stock price is 132% more volatile than the S&P 500.

Summary

BRP beats Workhorse Group on 9 of the 15 factors compared between the two stocks.

About BRP

(Get Free Report)

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.

About Workhorse Group

(Get Free Report)

Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Sharonville, Ohio.

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