Winnebago Industries (NYSE: WGO) and Brunswick Corporation (NYSE:BC) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.
Dividends
Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.3%. Winnebago Industries pays out 20.0% 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. Winnebago Industries has raised its dividend for 4 consecutive years and Brunswick Corporation has raised its dividend for 2 consecutive years.
Volatility and Risk
Winnebago Industries has a beta of 1.98, suggesting that its stock price is 98% 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.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Winnebago Industries and Brunswick Corporation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Winnebago Industries | 0 | 1 | 6 | 0 | 2.86 |
| Brunswick Corporation | 0 | 4 | 8 | 0 | 2.67 |
Winnebago Industries currently has a consensus target price of $35.20, suggesting a potential upside of 2.47%. Brunswick Corporation has a consensus target price of $65.45, suggesting a potential upside of 28.67%. Given Brunswick Corporation’s higher possible upside, analysts clearly believe Brunswick Corporation is more favorable than Winnebago Industries.
Profitability
This table compares Winnebago Industries and Brunswick Corporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Winnebago Industries | 4.39% | 20.01% | 9.71% |
| Brunswick Corporation | 6.13% | 23.35% | 10.44% |
Institutional & Insider Ownership
79.6% of Winnebago Industries shares are held by institutional investors. Comparatively, 99.3% of Brunswick Corporation shares are held by institutional investors. 1.5% of Winnebago Industries shares are held by insiders. Comparatively, 1.0% of Brunswick Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Winnebago Industries and Brunswick Corporation’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Winnebago Industries | $1.36 billion | 0.80 | $115.70 million | $2.00 | 17.18 |
| Brunswick Corporation | $4.69 billion | 0.96 | $602.40 million | $3.15 | 16.15 |
Brunswick Corporation has higher revenue and earnings than Winnebago Industries. Brunswick Corporation is trading at a lower price-to-earnings ratio than Winnebago Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Brunswick Corporation beats Winnebago Industries on 11 of the 17 factors compared between the two stocks.
About Winnebago Industries
Winnebago Industries, Inc. is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The Company offers products under categories, which include motorhomes, towables and other manufactured products. The Company produces all of its motorhomes in vertically integrated manufacturing facilities in Iowa and it produces all travel trailer and fifth wheel trailers in Indiana. The Company operates under the brand, Winnebago. The Company distributes its products primarily through independent dealers throughout the United States and Canada, who then retail the products to the end consumer.
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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