Subaru (OTCMKTS:FUJHY) & Thor Industries (NYSE:THO) Financial Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Subaru	1.77%	3.01%	1.56%
Thor Industries	2.67%	5.74%	3.51%

Dividends

Subaru pays an annual dividend of $0.22 per share and has a dividend yield of 2.6%. Thor Industries pays an annual dividend of $2.08 per share and has a dividend yield of 2.7%. Subaru pays out 55.0% of its earnings in the form of a dividend. Thor Industries pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Thor Industries has raised its dividend for 15 consecutive years. Thor Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

0.0% of Subaru shares are held by institutional investors. Comparatively, 96.7% of Thor Industries shares are held by institutional investors. 4.7% of Thor Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Subaru and Thor Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subaru	$31.79 billion	0.38	$599.56 million	$0.40	21.18
Thor Industries	$9.82 billion	0.40	$258.56 million	$2.31	33.03

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

Volatility and Risk

Subaru has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Thor Industries has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Subaru and Thor Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	1	1	0	0	1.50
Thor Industries	0	11	3	0	2.21

Thor Industries has a consensus price target of $92.33, indicating a potential upside of 21.00%. Given Thor Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Thor Industries is more favorable than Subaru.

Summary

Thor Industries beats Subaru on 14 of the 17 factors compared between the two stocks.

About Subaru

Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.

About Thor Industries

THOR Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers. The company provides its products through independent and non-franchise dealers. THOR Industries, Inc. was incorporated in 1980 and is based in Elkhart, Indiana.