Head-To-Head Analysis: Brunswick Corporation (BC) vs. LCI Industries (DW)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Brunswick Corporation 6.03% 23.15% 10.18%
LCI Industries 8.66% 30.50% 21.11%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brunswick Corporation and LCI Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick Corporation 1 2 9 0 2.67
LCI Industries 0 0 3 0 3.00

Brunswick Corporation currently has a consensus target price of $65.60, indicating a potential upside of 9.10%. LCI Industries has a consensus target price of $116.67, indicating a potential upside of 8.28%. Given Brunswick Corporation’s higher possible upside, equities analysts clearly believe Brunswick Corporation is more favorable than LCI Industries.

Dividends

Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.1%. LCI Industries pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Brunswick Corporation pays out 22.0% of its earnings in the form of a dividend. LCI Industries pays out 41.7% 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. LCI Industries has raised its dividend for 4 consecutive years. LCI Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Brunswick Corporation and LCI Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brunswick Corporation $4.58 billion 1.17 $589.80 million $3.00 20.04
LCI Industries N/A N/A N/A $4.80 22.45

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.

Risk and Volatility

Brunswick Corporation has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Insider & Institutional Ownership

99.3% of Brunswick Corporation shares are owned by institutional investors. Comparatively, 93.6% of LCI Industries shares are owned by institutional investors. 1.0% of Brunswick Corporation shares are owned by company insiders. Comparatively, 3.8% of LCI Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

LCI Industries beats Brunswick Corporation on 8 of the 14 factors compared between the two stocks.

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.

About LCI Industries

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.

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