Briggs & Stratton Corporation (NYSE: BGG) and American Axle & Manufacturing Holdings (NYSE:AXL) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Volatility and Risk
Briggs & Stratton Corporation has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing Holdings has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Earnings & Valuation
This table compares Briggs & Stratton Corporation and American Axle & Manufacturing Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Briggs & Stratton Corporation||$1.79 billion||0.49||$142.47 million||$1.30||15.65|
|American Axle & Manufacturing Holdings||$4.76 billion||0.33||$815.70 million||$2.95||4.74|
American Axle & Manufacturing Holdings has higher revenue and earnings than Briggs & Stratton Corporation. American Axle & Manufacturing Holdings is trading at a lower price-to-earnings ratio than Briggs & Stratton Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Briggs & Stratton Corporation and American Axle & Manufacturing Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Briggs & Stratton Corporation||3.17%||11.24%||3.77%|
|American Axle & Manufacturing Holdings||5.32%||42.42%||6.42%|
This is a breakdown of current ratings for Briggs & Stratton Corporation and American Axle & Manufacturing Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Briggs & Stratton Corporation||0||0||1||0||3.00|
|American Axle & Manufacturing Holdings||2||2||8||0||2.50|
Briggs & Stratton Corporation currently has a consensus price target of $25.00, suggesting a potential upside of 22.85%. American Axle & Manufacturing Holdings has a consensus price target of $19.44, suggesting a potential upside of 38.99%. Given American Axle & Manufacturing Holdings’ higher probable upside, analysts clearly believe American Axle & Manufacturing Holdings is more favorable than Briggs & Stratton Corporation.
Briggs & Stratton Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. American Axle & Manufacturing Holdings does not pay a dividend. Briggs & Stratton Corporation pays out 43.1% of its earnings in the form of a dividend. American Axle & Manufacturing Holdings has increased its dividend for 5 consecutive years.
Insider & Institutional Ownership
85.2% of Briggs & Stratton Corporation shares are owned by institutional investors. 4.7% of Briggs & Stratton Corporation shares are owned by company insiders. Comparatively, 1.0% of American Axle & Manufacturing Holdings shares are owned 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.
American Axle & Manufacturing Holdings beats Briggs & Stratton Corporation on 11 of the 17 factors compared between the two stocks.
About Briggs & Stratton Corporation
Briggs & Stratton Corporation is a producer of gasoline engines for outdoor power equipment. The Company designs, manufactures, markets, sells and services the various products for original equipment manufacturers (OEMs) around the world. It also markets and sells related service parts and accessories for its engines. Its subsidiary is a marketer of pressure washers, and it is a designer, manufacturer and marketer of power generation, lawn and garden, turf care and job site products through its Simplicity, Snapper, Snapper Pro, Ferris, PowerBoss, Allmand, Billy Goat, Murray, Branco and Victa brands. It operates in over 100 countries on six continents. It operates through two segments: Engines and Products. Its Engines segment sells engines around the world, primarily to OEMs of lawn and garden equipment and other gasoline engine-powered equipment. Its Products segment designs, manufactures and markets a range of outdoor power equipment, job site products and related accessories.
About American Axle & Manufacturing Holdings
American Axle & Manufacturing Holdings, Inc. (AAM) manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, crossover vehicles, passenger cars and commercial vehicles. Its driveline and drivetrain systems include components that transfer power from the transmission and deliver it to the drive wheels. Its driveline, drivetrain and related products include axles, driveheads, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, transmission parts, electric drive systems and metal-formed products. The Company’s subsidiary, e-AAM Driveline Systems AB (e-AAM), engineers and develops battery electric and hybrid driveline systems to be commercialized for crossover vehicles and passenger cars. As of April 6, 2017, it operated in 17 countries and had approximately 90 manufacturing, engineering and business office facilities around the world.
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