Comparing BRP (DOOO) and Its Rivals

BRP (NASDAQ:DOOO) is one of 71 publicly-traded companies in the “AUTO/TRUCK – ORIG” industry, but how does it contrast to its competitors? We will compare BRP to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a summary of recent ratings for BRP and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRP	0	8	1	3	2.58
BRP Competitors	556	3125	4404	194	2.51

BRP presently has a consensus target price of $43.00, suggesting a potential downside of 9.72%. As a group, “AUTO/TRUCK – ORIG” companies have a potential upside of 23.55%. Given BRP’s competitors higher probable upside, analysts plainly believe BRP has less favorable growth aspects than its competitors.

Dividends

BRP pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. BRP pays out -146.3% of its earnings in the form of a dividend. As a group, “AUTO/TRUCK – ORIG” companies pay a dividend yield of 2.6% and pay out 39.2% of their earnings in the form of a dividend. BRP has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

65.0% of shares of all “AUTO/TRUCK – ORIG” companies are held by institutional investors. 8.1% of shares of all “AUTO/TRUCK – ORIG” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares BRP and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRP	-0.55%	54.71%	3.88%
BRP Competitors	-1,305.32%	-136.76%	-5.83%

Valuation & Earnings

This table compares BRP and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BRP	$5.44 billion	-$154.60 million	-116.17
BRP Competitors	$6.92 billion	$184.37 million	12.05

BRP’s competitors have higher revenue and earnings than BRP. BRP is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

BRP has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, BRP’s competitors have a beta of 3.22, suggesting that their average share price is 222% more volatile than the S&P 500.

Summary

BRP competitors beat BRP on 9 of the 15 factors compared.

About BRP

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.