Comparing Brunswick (BC) & LCI Industries (LCII)

Brunswick (NYSE: BC) and LCI Industries (NYSE:LCII) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Dividends

Brunswick pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. LCI Industries pays an annual dividend of $2.20 per share and has a dividend yield of 1.7%. Brunswick pays out 24.5% of its earnings in the form of a dividend. LCI Industries pays out 39.2% 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. LCI Industries has raised its dividend for 4 consecutive years. LCI Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Brunswick has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

92.2% of Brunswick shares are owned by institutional investors. Comparatively, 99.5% of LCI Industries shares are owned by institutional investors. 1.0% of Brunswick shares are owned by company insiders. Comparatively, 3.6% of LCI Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Brunswick and LCI Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brunswick 5.93% 22.71% 10.27%
LCI Industries 7.07% 23.60% 16.10%

Valuation & Earnings

This table compares Brunswick and LCI Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brunswick $4.49 billion 1.07 $276.00 million $3.10 17.65
LCI Industries $1.68 billion 1.93 $129.67 million $5.61 23.16

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Brunswick and LCI Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick 0 3 12 0 2.80
LCI Industries 1 0 3 0 2.50

Brunswick currently has a consensus target price of $62.50, indicating a potential upside of 14.26%. LCI Industries has a consensus target price of $123.00, indicating a potential downside of 5.35%. Given Brunswick’s stronger consensus rating and higher possible upside, equities analysts plainly believe Brunswick is more favorable than LCI Industries.

Summary

LCI Industries beats Brunswick on 10 of the 17 factors compared between the two stocks.

Brunswick 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.

LCI Industries Company Profile

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

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