BRP (NASDAQ:DOOO) and Nabtesco (OTCMKTS:NCTKF) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Valuation and Earnings

This table compares BRP and Nabtesco’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BRP $4.02 billion 1.07 $175.13 million $2.38 20.16
Nabtesco $2.67 billion 1.37 $191.37 million $1.54 19.16

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

Volatility and Risk

BRP has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, Nabtesco has a beta of 3.36, indicating that its stock price is 236% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BRP and Nabtesco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRP 0 1 6 0 2.86
Nabtesco 0 0 0 0 N/A

BRP currently has a consensus price target of $49.03, suggesting a potential upside of 2.19%. Given BRP’s higher possible upside, equities research analysts clearly believe BRP is more favorable than Nabtesco.

Profitability

This table compares BRP and Nabtesco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BRP 5.66% -73.58% 9.95%
Nabtesco 6.77% 10.49% 5.96%

Insider & Institutional Ownership

24.3% of BRP shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

BRP pays an annual dividend of $0.30 per share and has a dividend yield of 0.6%. Nabtesco does not pay a dividend. BRP pays out 12.6% of its earnings in the form of a dividend.

Summary

BRP beats Nabtesco on 8 of the 14 factors compared between the two stocks.

BRP Company Profile

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersport vehicles and marine products worldwide. It operates through two segments, Powersports and Marine. The company offers all-terrain, side-by-side, and three-wheeled vehicles; seasonal products consisting of snowmobiles and personal watercraft; and propulsion systems comprising engines for outboard and jet boats, karts, motorcycles, and recreational aircraft. It also provides parts, accessories, and clothing, as well as PAC and other services. BRP Inc. sells its products through a network of independent dealers and distributors, as well as to original equipment manufacturers under the Can-Am, Ski-Doo, Lynx, Sea-Doo, Evinrude, Alumacraft, Manitou, and Rotax brand names. 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.

Nabtesco Company Profile

Nabtesco Corporation manufactures and sells equipment in the industrial, daily life, and environmental fields in Japan and internationally. It operates through Component Solutions, Transport Solutions, Accessibility Solutions, and Manufacturing Solutions segments. The company offers precision reduction gears for industrial robots' joints; hydraulic equipment, such as traveling unit for crawlers, control valve for mini excavators, and swing unit for hydraulic excavators; railroad vehicle equipment, such as railroad vehicle brake systems, door operating units, test equipment, brake shoes, seat turning equipment, and snow removal devices; and aircraft equipment comprising flight control actuation systems and high voltage electric power distribution units. It also provides air dryers and wedge brake chambers for commercial vehicles, and hydraulic clutch master cylinders for passenger vehicles; engine remote control systems for vessels; automatic doors and platform doors for buildings; automatic filters/sealers for retort pouch foods; and intelligent prosthetic knee joints, electric wheelchairs, stair lift with a wheelchair, and rollator with a speed control system, as well as new energy equipment comprising yaw and pitch drives, and solar tracking equipment. Nabtesco Corporation was founded in 2003 and is headquartered in Tokyo, Japan.

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