LCI Industries (DW) versus Brunswick Corporation (BC) Critical Contrast

LCI Industries (NYSE: DW) and Brunswick Corporation (NYSE:BC) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitabiliy, dividends, earnings and risk.

Valuation and Earnings

This table compares LCI 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
LCI Industries N/A N/A N/A $4.80 22.45
Brunswick Corporation $4.69 billion 1.08 $602.40 million $3.15 17.96

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

Profitability

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

Net Margins Return on Equity Return on Assets
LCI Industries 8.66% 30.50% 21.11%
Brunswick Corporation 6.13% 23.35% 10.44%

Volatility & Risk

LCI Industries has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Brunswick Corporation has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for LCI Industries and Brunswick Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 0 0 3 0 3.00
Brunswick Corporation 0 3 8 0 2.73

LCI Industries currently has a consensus target price of $116.67, indicating a potential upside of 8.28%. Brunswick Corporation has a consensus target price of $65.30, indicating a potential upside of 15.41%. Given Brunswick Corporation’s higher probable upside, analysts clearly believe Brunswick Corporation is more favorable than LCI Industries.

Insider and Institutional Ownership

93.6% of LCI Industries shares are held by institutional investors. Comparatively, 99.7% of Brunswick Corporation shares are held by institutional investors. 3.8% of LCI 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

LCI Industries pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.2%. LCI Industries pays out 41.7% 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. Brunswick Corporation has increased its dividend for 4 consecutive years.

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.

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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