Analyzing Briggs & Stratton (BGG) and The Competition
Briggs & Stratton (NYSE: BGG) is one of 99 publicly-traded companies in the “MACHINERY” industry, but how does it weigh in compared to its competitors? We will compare Briggs & Stratton to similar businesses based on the strength of its dividends, institutional ownership, earnings, risk, analyst recommendations, profitability and valuation.
Briggs & Stratton pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Briggs & Stratton pays out 103.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “MACHINERY” companies pay a dividend yield of 1.3% and pay out 34.6% of their earnings in the form of a dividend. Briggs & Stratton has increased its dividend for 6 consecutive years.
Briggs & Stratton has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Briggs & Stratton’s competitors have a beta of 1.73, indicating that their average stock price is 73% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Briggs & Stratton and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Briggs & Stratton||0||3||0||0||2.00|
|Briggs & Stratton Competitors||582||2978||2908||82||2.38|
Briggs & Stratton currently has a consensus price target of $26.00, indicating a potential upside of 17.54%. As a group, “MACHINERY” companies have a potential upside of 5.33%. Given Briggs & Stratton’s higher possible upside, research analysts clearly believe Briggs & Stratton is more favorable than its competitors.
Valuation and Earnings
This table compares Briggs & Stratton and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Briggs & Stratton||$1.79 billion||$56.65 million||40.96|
|Briggs & Stratton Competitors||$3.86 billion||$259.43 million||1.57|
Briggs & Stratton’s competitors have higher revenue and earnings than Briggs & Stratton. Briggs & Stratton is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
84.6% of Briggs & Stratton shares are owned by institutional investors. Comparatively, 69.2% of shares of all “MACHINERY” companies are owned by institutional investors. 4.2% of Briggs & Stratton shares are owned by company insiders. Comparatively, 8.9% of shares of all “MACHINERY” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Briggs & Stratton and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Briggs & Stratton||1.31%||10.25%||3.61%|
|Briggs & Stratton Competitors||3.82%||14.07%||4.35%|
Briggs & Stratton competitors beat Briggs & Stratton on 11 of the 15 factors compared.
Briggs & Stratton Company Profile
Briggs & Stratton Corporation designs, manufactures, markets, sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers in the United States. It operates in two segments, Engines and Products. The Engines segment offers four-cycle aluminum alloy gasoline engines that are used primarily by the lawn and garden equipment industry. Its products are used in various lawn and garden equipment applications, including walk-behind lawn mowers, riding lawn mowers, garden tillers, and snow throwers, as well as products for industrial, construction, agricultural, and other consumer applications that include portable and standby generators, pumps, and pressure washers. This segment also manufactures and sells replacement engines and service parts to sales and service distributors. The Products segment primarily provides a line of portable and standby generators, pressure washers, snow throwers, lawn and garden power equipment, turf care, and job site products. This segment sells its products through various channels of retail distribution, including consumer home centers, warehouse clubs, mass merchants, and independent dealers and distributors under its own brands, such as Briggs & Stratton, Simplicity, Snapper, Snapper Pro, Ferris, Allmand, Billy Goat, Murray, Branco, and Victa, as well as other brands comprising Craftsman and Troy-Bilt. The company also exports its products to customers in Europe, Asia, Australia, and Canada. Briggs & Stratton Corporation was founded in 1908 and is headquartered in Wauwatosa, Wisconsin.
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