Brunswick Corporation (NYSE:BC) vs. Thor Industries (THO) Critical Survey

Thor Industries (NYSE: THO) and Brunswick Corporation (NYSE:BC) are both mid-cap construction companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Thor Industries and Brunswick Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thor Industries 1 2 9 0 2.67
Brunswick Corporation 0 4 8 0 2.67

Thor Industries presently has a consensus target price of $109.50, suggesting a potential upside of 6.59%. Brunswick Corporation has a consensus target price of $64.70, suggesting a potential upside of 27.19%. Given Brunswick Corporation’s higher possible upside, analysts clearly believe Brunswick Corporation is more favorable than Thor Industries.

Volatility and Risk

Thor Industries has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Brunswick Corporation has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.

Valuation & Earnings

This table compares Thor Industries and Brunswick Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Thor Industries $6.60 billion 0.82 $598.38 million $6.40 16.05
Brunswick Corporation $4.69 billion 0.96 $602.40 million $3.15 16.15

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

Profitability

This table compares Thor Industries and Brunswick Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thor Industries 5.11% 24.83% 13.87%
Brunswick Corporation 6.13% 23.35% 10.44%

Dividends

Thor Industries pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.3%. Thor Industries pays out 20.6% of its earnings in the form of a dividend. Brunswick Corporation pays out 21.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Thor Industries has increased its dividend for 4 consecutive years and Brunswick Corporation has increased its dividend for 7 consecutive years. Brunswick Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

89.6% of Thor Industries shares are held by institutional investors. Comparatively, 99.3% of Brunswick Corporation shares are held by institutional investors. 6.6% of Thor Industries shares are held by company insiders. Comparatively, 1.0% of Brunswick Corporation shares are held 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.

Summary

Brunswick Corporation beats Thor Industries on 9 of the 16 factors compared between the two stocks.

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).

Brunswick Corporation Company Profile

Brunswick Corporation is a designer, manufacturer and marketer of recreation products. The Company operates through three segments: Marine Engine, Boat and Fitness. The Company’s product includes marine engines, boats, fitness equipment and active recreation products. The Company’s engine-related products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems; and marine parts and accessories. Its boat offerings include: fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; utility boats; deck boats; inflatable boats; and heavy-gauge aluminum boats. Its fitness products include cardiovascular and strength training equipment for both the commercial and consumer markets. It also sells products for active aging, rehabilitation, productive well-being, a complete line of billiards tables and other game room tables and accessories.

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