Critical Comparison: Bayerische Motoren Werke (OTCMKTS:BAMXF) and Thor Industries (NYSE:THO)

Thor Industries (NYSE:THO) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Institutional and Insider Ownership

96.7% of Thor Industries shares are owned by institutional investors. 4.7% of Thor Industries shares 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Thor Industries and Bayerische Motoren Werke, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thor Industries	0	11	3	0	2.21
Bayerische Motoren Werke	1	3	0	1	2.20

Thor Industries currently has a consensus price target of $92.33, indicating a potential upside of 26.67%. Given Thor Industries’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Thor Industries is more favorable than Bayerische Motoren Werke.

Profitability

This table compares Thor Industries and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thor Industries	2.67%	5.74%	3.51%
Bayerische Motoren Werke	4.92%	6.50%	2.37%

Earnings & Valuation

This table compares Thor Industries and Bayerische Motoren Werke”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thor Industries	$9.58 billion	0.40	$258.56 million	$2.31	31.56
Bayerische Motoren Werke	$150.95 billion	0.28	$8.25 billion	$12.12	6.00

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

Volatility and Risk

Thor Industries has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Summary

Thor Industries beats Bayerische Motoren Werke on 9 of the 15 factors compared between the two stocks.

About Thor Industries

THOR Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers. The company provides its products through independent and non-franchise dealers. THOR Industries, Inc. was incorporated in 1980 and is based in Elkhart, Indiana.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.