Brunswick (BC) & The Competition Financial Analysis

Brunswick (NYSE:BC) is one of 95 public companies in the “Leisure Products” industry, but how does it contrast to its competitors? We will compare Brunswick to similar businesses based on the strength of its analyst recommendations, risk, institutional ownership, profitability, valuation, dividends and earnings.

Risk & Volatility

Brunswick has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Brunswick’s competitors have a beta of 1.21, suggesting that their average share price is 21% more volatile than the S&P 500.

Dividends

Brunswick pays an annual dividend of $1.76 per share and has a dividend yield of 2.3%. Brunswick pays out -134.4% of its earnings in the form of a dividend. As a group, “Leisure Products” companies pay a dividend yield of 2.9% and pay out 55.5% of their earnings in the form of a dividend. Brunswick has raised its dividend for 13 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Brunswick and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brunswick	1	5	5	1	2.50
Brunswick Competitors	560	2380	3802	187	2.52

Brunswick currently has a consensus target price of $84.60, suggesting a potential upside of 12.44%. As a group, “Leisure Products” companies have a potential upside of 28.15%. Given Brunswick’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Brunswick has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brunswick	-1.53%	15.28%	4.60%
Brunswick Competitors	-8.41%	-18.48%	-3.95%

Valuation and Earnings

This table compares Brunswick and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Brunswick	$5.36 billion	-$137.30 million	-57.44
Brunswick Competitors	$2.94 billion	$72.16 million	570.37

Brunswick has higher revenue, but lower earnings than its competitors. Brunswick 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.

Insider and Institutional Ownership

99.3% of Brunswick shares are held by institutional investors. Comparatively, 45.3% of shares of all “Leisure Products” companies are held by institutional investors. 1.0% of Brunswick shares are held by insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Brunswick beats its competitors on 8 of the 15 factors compared.

Brunswick Company Profile

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. It operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands. The Engine P&A segment offers engine parts and consumables, electrical products, boat parts and systems, and engine oils and lubricants through aftermarket retailers, dealers, distributors, and original equipment manufacturers for marine and non-marine markets under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands; and distributes marine parts and accessories. The Navico Group segment provides products and systems for the marine, recreational vehicle (RV), specialty vehicle, mobile, and industrial markets, as well as aftermarket channels; and marine electronics, sensors, control systems, instruments, power systems, and general accessories under the Ancor, Attwood, B&G, BEP, Blue Sea Systems, C-MAP, CZone, Lenco, Lowrance, Marinco, Mastervolt, MotorGuide, Progressive Industries, ProMariner, RELiON, Simrad, and Whale brand names. The Boat segment offers Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts, and Heyday wake boats; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; Thunder Jet heavy-gauge aluminum boats; Veer recreational and fishing boats; and the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.