LCI Industries (NYSE: DW) and Brunswick Corporation (NYSE:BC) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitabiliy, valuation, earnings and risk.
Insider and Institutional Ownership
93.6% of LCI Industries shares are held by institutional investors. Comparatively, 99.0% of Brunswick Corporation shares are held by institutional investors. 3.8% of LCI Industries shares are held by company insiders. Comparatively, 1.0% of Brunswick Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
LCI Industries pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.1%. LCI Industries pays out 41.7% of its earnings in the form of a dividend. Brunswick Corporation pays out 22.0% 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. LCI Industries has raised its dividend for 4 consecutive years. LCI Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
LCI Industries has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Brunswick Corporation has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.
This is a breakdown of current ratings for LCI Industries and Brunswick Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LCI Industries currently has a consensus price target of $116.67, suggesting a potential upside of 8.28%. Brunswick Corporation has a consensus price target of $65.60, suggesting a potential upside of 4.76%. Given LCI Industries’ stronger consensus rating and higher probable upside, equities research analysts clearly believe LCI Industries is more favorable than Brunswick Corporation.
This table compares LCI Industries and Brunswick Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares LCI Industries and Brunswick Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Brunswick Corporation||$4.58 billion||1.22||$589.80 million||$3.00||20.87|
Brunswick Corporation has higher revenue and earnings than LCI Industries. Brunswick Corporation is trading at a lower price-to-earnings ratio than LCI Industries, indicating that it is currently the more affordable of the two stocks.
LCI Industries beats Brunswick Corporation on 9 of the 14 factors compared between the two stocks.
LCI Industries Company Profile
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.
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.
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