Head-To-Head Survey: BRP (NASDAQ:DOOO) vs. Mattel (NASDAQ:MAT)

Mattel (NASDAQ:MAT) and BRP (NASDAQ:DOOO) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Valuation & Earnings

This table compares Mattel and BRP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mattel	$5.35 billion	0.81	$397.58 million	$1.36	11.13
BRP	$8.03 billion	0.56	-$154.60 million	$0.37	167.32

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Mattel and BRP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mattel	3	5	5	1	2.29
BRP	0	4	8	1	2.77

Mattel presently has a consensus price target of $17.80, suggesting a potential upside of 17.57%. BRP has a consensus price target of $94.75, suggesting a potential upside of 53.04%. Given BRP’s stronger consensus rating and higher probable upside, analysts plainly believe BRP is more favorable than Mattel.

Institutional and Insider Ownership

97.2% of Mattel shares are owned by institutional investors. 1.9% of Mattel shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Mattel has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, BRP has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Mattel and BRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mattel	7.79%	16.20%	5.37%
BRP	0.45%	67.30%	4.72%

About Mattel

Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.