Analyzing Polaris Industries (PII) & BRP (DOOO)

Polaris Industries (NYSE:PII) and BRP (NASDAQ:DOOO) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Dividends

Polaris Industries pays an annual dividend of $2.40 per share and has a dividend yield of 2.5%. BRP pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Polaris Industries pays out 49.5% of its earnings in the form of a dividend. Polaris Industries has raised its dividend for 6 consecutive years. Polaris Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Polaris Industries and BRP, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polaris Industries 0 10 4 1 2.40
BRP 0 0 4 0 3.00

Polaris Industries currently has a consensus target price of $110.17, suggesting a potential upside of 13.25%. Given Polaris Industries’ higher possible upside, equities analysts clearly believe Polaris Industries is more favorable than BRP.

Valuation & Earnings

This table compares Polaris Industries and BRP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Polaris Industries $5.43 billion 1.11 $172.49 million $4.85 20.06
BRP N/A N/A N/A N/A N/A

Polaris Industries has higher revenue and earnings than BRP.

Profitability

This table compares Polaris Industries and BRP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Polaris Industries 4.68% 43.14% 11.59%
BRP N/A N/A N/A

Insider & Institutional Ownership

83.4% of Polaris Industries shares are owned by institutional investors. Comparatively, 1.1% of BRP shares are owned by institutional investors. 2.4% of Polaris Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Polaris Industries beats BRP on 10 of the 12 factors compared between the two stocks.

Polaris Industries Company Profile

Polaris Industries Inc. designs, engineers, manufactures, and markets power sports vehicles worldwide. The company operates through four segments: Off-Road Vehicles (ORVs)/Snowmobiles, Motorcycles, Global Adjacent Markets, and Aftermarket. It offers ORVs, including all-terrain vehicles and side-by-side vehicles for recreational and utility use; snowmobiles; motorcycles; and low emission, light duty hauling, passenger, commercial, and industrial vehicles, as well as snow bike conversion kit systems. The company also produces or supplies various replacement parts and accessories consisting of winches, bumpers/brush guards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oils for ORVs; covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oils, and lubricants for snowmobiles; and saddle bags, handlebars, backrests, exhausts, windshields, seats, oils, and various chrome accessories for motorcycles. In addition, it sells recreational apparel, such as helmets, jackets, gloves, pants, hats, goggles, boots, bibs, and leathers through a network of dealers and distributors, as well as through online. The company markets its products under the RZR, RANGER, GENERAL, Sportsman, Polaris ACE, RANGER XP, RZR XP, Turbo DYNAMIX, Timbersled, Indian Motorcycles, Slingshot, GEM, Goupil, Aixam, Taylor-Dunn, DAGOR, Sportsman MV, MRZR, Kolpin, Pro Armor, Klim, 509, and Trail Tech brands. Further, it manufactures, distributes, retails, and installs aftermarket parts and accessories for light trucks, jeeps, sport-utility vehicles, and other four-wheel drive vehicles under the Pro Comp, Smittybilt, Rubicon Express, Poison Spyder, Trail Master, LRG, and G2 Axle & Gear brands through its 84 brick-and-mortar 4 Wheel Parts retail centers, call centers, and e-commerce sites. Polaris Industries Inc. was founded in 1954 and is headquartered in Medina, Minnesota.

BRP Company Profile

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and propulsion systems worldwide. The company offers all-terrain, side-by-side, and spyder vehicles; seasonal products consisting of snowmobiles and personal watercraft; and propulsion systems comprising engines for outboard and jet boats, karts, motorcycles, and recreational aircrafts. It sells its products through a network of independent dealers and distributors, as well as to original equipment manufacturers under the Can-Am, Ski-Doo, Lynx, Sea-Doo, Evinrude, and Rotax brand names. The company also provides parts, accessories, and clothing, as well as other services. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.

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