Winnebago Industries (NYSE: WGO) and Vista Outdoor (NYSE:VSTO) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Risk and Volatility

Winnebago Industries has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500. Comparatively, Vista Outdoor has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Winnebago Industries and Vista Outdoor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Winnebago Industries 0 1 6 0 2.86
Vista Outdoor 0 6 5 0 2.45

Winnebago Industries currently has a consensus price target of $35.20, suggesting a potential downside of 10.89%. Vista Outdoor has a consensus price target of $29.86, suggesting a potential upside of 33.92%. Given Vista Outdoor’s higher probable upside, analysts plainly believe Vista Outdoor is more favorable than Winnebago Industries.

Dividends

Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Vista Outdoor does not pay a dividend. Winnebago Industries pays out 20.0% of its earnings in the form of a dividend. Vista Outdoor has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

84.7% of Winnebago Industries shares are owned by institutional investors. Comparatively, 96.5% of Vista Outdoor shares are owned by institutional investors. 1.5% of Winnebago Industries shares are owned by company insiders. Comparatively, 1.5% of Vista Outdoor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Winnebago Industries $1.36 billion 0.92 $115.70 million $2.00 19.75
Vista Outdoor $2.49 billion 0.51 $280.08 million ($4.91) -4.54

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

Profitability

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

Net Margins Return on Equity Return on Assets
Winnebago Industries 4.39% 20.01% 9.71%
Vista Outdoor -11.55% 7.02% 3.07%

Summary

Winnebago Industries beats Vista Outdoor on 9 of the 15 factors compared between the two stocks.

About Winnebago Industries

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.

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.

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