Vista Outdoor (NYSE: VSTO) and Thor Industries (NYSE:THO) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Risk & Volatility

Vista Outdoor has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500. Comparatively, Thor Industries has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Insider & Institutional Ownership

96.5% of Vista Outdoor shares are held by institutional investors. Comparatively, 89.7% of Thor Industries shares are held by institutional investors. 1.5% of Vista Outdoor shares are held by company insiders. Comparatively, 6.6% of Thor Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Thor Industries pays an annual dividend of $1.32 per share and has a dividend yield of 1.2%. Vista Outdoor does not pay a dividend. Thor Industries pays out 20.6% of its earnings in the form of a dividend. Vista Outdoor has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Vista Outdoor and Thor Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vista Outdoor 0 6 5 0 2.45
Thor Industries 1 2 9 0 2.67

Vista Outdoor presently has a consensus target price of $29.86, suggesting a potential upside of 45.68%. Thor Industries has a consensus target price of $109.50, suggesting a potential upside of 0.45%. Given Vista Outdoor’s higher probable upside, equities research analysts plainly believe Vista Outdoor is more favorable than Thor Industries.

Profitability

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

Net Margins Return on Equity Return on Assets
Vista Outdoor -11.55% 7.02% 3.07%
Thor Industries 5.11% 24.83% 13.87%

Valuation and Earnings

This table compares Vista Outdoor and Thor Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vista Outdoor $2.49 billion 0.47 $280.08 million ($4.91) -4.18
Thor Industries $6.60 billion 0.87 $598.38 million $6.40 17.03

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

Summary

Thor Industries beats Vista Outdoor on 13 of the 17 factors compared between the two stocks.

Vista Outdoor Company Profile

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.

Thor Industries Company Profile

Thor Industries, Inc. manufactures a range of recreational vehicles (RVs) in the United States and sells those vehicles primarily in the United States and Canada. The Company’s segments include towable recreational vehicles, which consists of the operations of Airstream, Inc. (Airstream) (towable); Heartland Recreational Vehicles, LLC (Heartland) (including Bison Coach, LLC (Bison), Cruiser RV, LLC (CRV) and DRV, LLC (DRV)); Jayco, Corp. (Jayco) (including Jayco towable, Starcraft and Highland Ridge), Keystone RV Company (Keystone) (including CrossRoads and Dutchmen) and K.Z., Inc. (KZ) (including Livin’ Lite RV, Inc. (Livin’ Lite)); motorized recreational vehicles, which consists of the operations of Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) and Thor Motor Coach, Inc. (Thor Motor Coach), and Other, which includes the operations of its subsidiary, Postle Operating, LLC (Postle).

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