Analyzing Polaris Industries (PII) & Winnebago Industries (WGO)
Polaris Industries (NYSE: PII) and Winnebago Industries (NYSE:WGO) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitabiliy and institutional ownership.
Risk and Volatility
Polaris Industries has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Winnebago Industries has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Polaris Industries and Winnebago Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Polaris Industries presently has a consensus target price of $86.46, suggesting a potential downside of 3.29%. Winnebago Industries has a consensus target price of $35.20, suggesting a potential downside of 1.81%. Given Winnebago Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Winnebago Industries is more favorable than Polaris Industries.
Valuation & Earnings
This table compares Polaris Industries and Winnebago Industries’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Polaris Industries||$5.00 billion||1.12||$526.01 million||$2.39||37.41|
|Winnebago Industries||$1.36 billion||0.83||$115.70 million||$2.00||17.93|
Polaris Industries has higher revenue and earnings than Winnebago Industries. Winnebago Industries is trading at a lower price-to-earnings ratio than Polaris Industries, indicating that it is currently the more affordable of the two stocks.
Polaris Industries pays an annual dividend of $2.32 per share and has a dividend yield of 2.6%. Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Polaris Industries pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Winnebago Industries pays out 20.0% of its earnings in the form of a dividend. Polaris Industries has raised its dividend for 5 consecutive years and Winnebago Industries has raised its dividend for 2 consecutive years. Polaris Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
94.0% of Polaris Industries shares are held by institutional investors. Comparatively, 77.4% of Winnebago Industries shares are held by institutional investors. 2.2% of Polaris Industries shares are held by insiders. Comparatively, 1.5% of Winnebago Industries shares are held by 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.
This table compares Polaris Industries and Winnebago Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Polaris Industries beats Winnebago Industries on 10 of the 17 factors compared between the two stocks.
Polaris Industries Company Profile
Polaris Industries Inc. designs, engineers and manufactures powersports vehicles, which include Off-Road Vehicles (ORV), including All-Terrain Vehicles (ATV) and side-by-side vehicles for recreational and utility use; Snowmobiles, Motorcycles and Global Adjacent Markets vehicles, including Work and Transportation and military vehicles. The Company’s segments include ORV/Snowmobiles, Motorcycles, Global Adjacent Markets, and Other. Its ORVs includes the RZR sport side-by-side, the RANGER utility side-by-side, the GENERAL crossover side-by-side, the Sportsman ATV and the Polaris ACE. It produces a range of snowmobiles consisting of approximately 40 models. It offers a range of motorcycles under Indian motorcycles and Slingshot brands. The Global Adjacent Markets vehicles include low emission vehicles, light duty hauling, passenger vehicles and industrial vehicles. The Other segment includes business of TAP Automotive Holdings, LLC, a manufacturer of off-road Jeep and truck 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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