Critical Comparison: BRP (DOOO) versus Its Rivals

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

Valuation & Earnings

This table compares BRP and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BRP	$5.44 billion	-$154.60 million	-114.54
BRP Competitors	$6.66 billion	$184.37 million	11.56

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

Profitability

This table compares BRP and its rivals’ 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%

Analyst Ratings

This is a summary of current ratings and price targets for BRP and its rivals, 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	3127	4405	195	2.51

BRP presently has a consensus price target of $43.00, suggesting a potential downside of 8.43%. As a group, “AUTO/TRUCK – ORIG” companies have a potential upside of 24.48%. Given BRP’s rivals higher probable upside, analysts plainly believe BRP has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

66.2% of shares of all “AUTO/TRUCK – ORIG” companies are owned by institutional investors. 8.4% of shares of all “AUTO/TRUCK – ORIG” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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 38.1% of their earnings in the form of a dividend. BRP has raised its dividend for 2 consecutive years.

Volatility & Risk

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

Summary

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

BRP Company Profile

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.