Vista Outdoor (NYSE: VSTO) and LCI Industries (NYSE:LCII) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Vista Outdoor and LCI Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vista Outdoor 1 7 2 0 2.10
LCI Industries 1 0 2 0 2.33

Vista Outdoor currently has a consensus target price of $23.33, suggesting a potential upside of 54.42%. LCI Industries has a consensus target price of $121.00, suggesting a potential downside of 4.27%. Given Vista Outdoor’s higher probable upside, analysts plainly believe Vista Outdoor is more favorable than LCI Industries.

Earnings and Valuation

This table compares Vista Outdoor and LCI Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vista Outdoor $2.55 billion 0.34 -$274.45 million ($8.18) -1.85
LCI Industries $1.68 billion 1.88 $129.67 million $5.61 22.53

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

Insider & Institutional Ownership

100.0% of Vista Outdoor shares are held by institutional investors. Comparatively, 97.7% of LCI Industries shares are held by institutional investors. 1.5% of Vista Outdoor shares are held by insiders. Comparatively, 3.6% of LCI Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Vista Outdoor and LCI Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vista Outdoor -19.88% 5.76% 2.42%
LCI Industries 7.07% 23.60% 16.10%

Dividends

LCI Industries pays an annual dividend of $2.20 per share and has a dividend yield of 1.7%. Vista Outdoor does not pay a dividend. LCI Industries pays out 39.2% of its earnings in the form of a dividend.

Summary

LCI Industries beats Vista Outdoor on 10 of the 14 factors compared between the two stocks.

About Vista Outdoor

Vista Outdoor Inc. is a designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets. The Company operates through two segments: Shooting Sports and Outdoor Products. Its Shooting Sports segment designs, develops, produces and sources ammunition and firearms for the hunting and sport shooting enthusiast markets, as well as ammunition for local law enforcement, the United States Government and international markets. Its Outdoor Products segment product lines include archery/hunting accessories, global eyewear and sport protection, golf, hydration products, optics, shooting accessories, tactical products and water sports. The Company serves the outdoor sports and recreation markets through a diverse portfolio of over 40 brands. It serves a range of end consumers, including outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals. It offers cooking solutions through Camp Chef brand.

About LCI Industries

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

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