Head-To-Head Contrast: Brunswick Corporation (BC) and Thor Industries (THO)

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

Risk and Volatility

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

Earnings and Valuation

This table compares Thor Industries and Brunswick Corporation’s revenue, earnings per share 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.

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.

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%

Insider and Institutional Ownership

89.6% of Thor Industries shares are owned by institutional investors. Comparatively, 99.3% of Brunswick Corporation shares are owned by institutional investors. 6.6% of Thor Industries shares are owned by insiders. Comparatively, 1.0% of Brunswick Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings 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, indicating a potential upside of 6.59%. Brunswick Corporation has a consensus target price of $64.70, indicating a potential upside of 27.19%. Given Brunswick Corporation’s higher possible upside, analysts clearly believe Brunswick Corporation is more favorable than Thor Industries.

Summary

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

About Thor Industries

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).

About Brunswick Corporation

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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