Analyzing NIO (NYSE:NIO) & Winnebago Industries (NYSE:WGO)

Winnebago Industries (NYSE:WGO) and NIO (NYSE:NIO) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Insider and Institutional Ownership

48.5% of NIO shares are held by institutional investors. 4.9% of Winnebago Industries shares are held by company insiders. Comparatively, 1.0% of NIO shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Winnebago Industries has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, NIO has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares Winnebago Industries and NIO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winnebago Industries	$2.84 billion	0.26	$25.70 million	$1.36	19.45
NIO	$12.51 billion	0.73	-$2.14 billion	($0.27)	-13.57

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

Analyst Ratings

This is a summary of current recommendations and price targets for Winnebago Industries and NIO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winnebago Industries	0	9	3	0	2.25
NIO	2	8	6	0	2.25

Winnebago Industries currently has a consensus target price of $36.22, suggesting a potential upside of 36.91%. NIO has a consensus target price of $5.98, suggesting a potential upside of 63.17%. Given NIO’s higher possible upside, analysts plainly believe NIO is more favorable than Winnebago Industries.

Profitability

This table compares Winnebago Industries and NIO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winnebago Industries	1.36%	4.65%	2.74%
NIO	-3.95%	-111.37%	-3.62%

Summary

Winnebago Industries beats NIO on 8 of the 13 factors compared between the two stocks.

About Winnebago Industries

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates through three segments: Towable RV, Motorhome RV, and Marine. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names. The company also offers motorhome RV, a self-propelled mobile dwelling used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles under the Winnebago and Newmar brand names. In addition, it offers other specialty commercial vehicles for law enforcement command centers, mobile medical clinics, and mobile office spaces; commercial vehicles as bare shells to third-party up fitters, as well as manufactures and sells recreational boats under the Chris-Craft and Barletta brand names. Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles. It sells its products primarily through independent dealers in the United States, Canada, and internationally. Winnebago Industries, Inc. was incorporated in 1958 and is based in Eden Prairie, Minnesota.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.