Brunswick Corporation (NYSE: BC) and Winnebago Industries (NYSE:WGO) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Brunswick Corporation and Winnebago Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick Corporation 0 3 8 0 2.73
Winnebago Industries 0 1 6 0 2.86

Brunswick Corporation presently has a consensus target price of $65.30, suggesting a potential upside of 18.30%. Winnebago Industries has a consensus target price of $35.20, suggesting a potential upside of 2.33%. Given Brunswick Corporation’s higher probable upside, equities analysts plainly believe Brunswick Corporation is more favorable than Winnebago Industries.

Profitability

This table compares Brunswick Corporation and Winnebago Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brunswick Corporation 6.13% 23.35% 10.44%
Winnebago Industries 4.39% 20.01% 9.71%

Dividends

Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.2%. Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Brunswick Corporation pays out 21.0% of its earnings in the form of a dividend. Winnebago Industries pays out 20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brunswick Corporation has increased its dividend for 4 consecutive years and Winnebago Industries has increased its dividend for 2 consecutive years. Brunswick Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

99.6% of Brunswick Corporation shares are owned by institutional investors. Comparatively, 77.7% of Winnebago Industries shares are owned by institutional investors. 1.0% of Brunswick Corporation shares are owned by company insiders. Comparatively, 1.5% of Winnebago Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Brunswick Corporation has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500. Comparatively, Winnebago Industries has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.

Valuation & Earnings

This table compares Brunswick Corporation and Winnebago Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brunswick Corporation $4.69 billion 1.06 $602.40 million $3.15 17.52
Winnebago Industries $1.36 billion 0.80 $115.70 million $2.00 17.20

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

Summary

Brunswick Corporation beats Winnebago Industries on 13 of the 17 factors compared between the two stocks.

Brunswick Corporation Company Profile

Brunswick Corporation is a designer, manufacturer and marketer of recreation products. The Company operates through three segments: Marine Engine, Boat and Fitness. The Company’s product includes marine engines, boats, fitness equipment and active recreation products. The Company’s engine-related products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems; and marine parts and accessories. Its boat offerings include: fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; utility boats; deck boats; inflatable boats; and heavy-gauge aluminum boats. Its fitness products include cardiovascular and strength training equipment for both the commercial and consumer markets. It also sells products for active aging, rehabilitation, productive well-being, a complete line of billiards tables and other game room tables and accessories.

Winnebago Industries Company Profile

Winnebago Industries, Inc. is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The Company offers products under categories, which include motorhomes, towables and other manufactured products. The Company produces all of its motorhomes in vertically integrated manufacturing facilities in Iowa and it produces all travel trailer and fifth wheel trailers in Indiana. The Company operates under the brand, Winnebago. The Company distributes its products primarily through independent dealers throughout the United States and Canada, who then retail the products to the end consumer.

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