BRP (NASDAQ:DOOO) & Panasonic (OTCMKTS:PCRFY) Head to Head Review

Panasonic (OTCMKTS:PCRFY) and BRP (NASDAQ:DOOO) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Volatility & Risk

Panasonic has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, BRP has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Panasonic and BRP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Panasonic	0	1	0	0	2.00
BRP	0	4	8	1	2.77

BRP has a consensus price target of $94.75, suggesting a potential upside of 53.04%. Given BRP’s stronger consensus rating and higher possible upside, analysts plainly believe BRP is more favorable than Panasonic.

Earnings & Valuation

This table compares Panasonic and BRP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Panasonic	$62.02 billion	0.35	$1.96 billion	$1.54	6.08
BRP	$8.03 billion	0.56	-$154.60 million	$0.37	167.32

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

Dividends

Panasonic pays an annual dividend of $0.18 per share and has a dividend yield of 1.9%. BRP pays an annual dividend of $0.61 per share and has a dividend yield of 1.0%. Panasonic pays out 11.7% of its earnings in the form of a dividend. BRP pays out 164.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRP has raised its dividend for 2 consecutive years. Panasonic is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Panasonic	5.96%	12.00%	5.82%
BRP	0.45%	67.30%	4.72%

Institutional and Insider Ownership

9.4% of Panasonic shares are held by institutional investors. 1.0% of Panasonic shares are held 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.

About Panasonic

Panasonic Holdings Corporation, together with its subsidiaries, research, develops, manufactures, sells, and services various electrical and electronic products worldwide. It operates through five segments: Lifestyle, Automotive, Connect, Industry, and Energy. The Lifestyle segment offers refrigerators, microwave ovens, rice cookers, washing machines, lighting fixtures, vacuum cleaners, air-conditioners, air to water heat pump system, air purifiers/sterilizers, and freezing or refrigerating showcases, as well as ventilation and perflation equipment. This segment also provides personal-care products; lamps, wiring devices, solar photovoltaic systems, fuel cells, and compressors; bicycles; and nursing care services. The Automotive segment offers infotainment systems, head-up displays, automotive speakers and switches, advanced driver assistance systems, and related devices, as well as systems and devices for xEVs and interior rearview mirrors. The Connect segment provides aircraft in-flight entertainment systems and communications services; electronic components-mounting machines; welding equipment; projectors; professional AV systems; PCs and tablets; solutions for various industries; installation/operation/ maintenance services; and supply chain management software. The Industry segment offers relays, switches, power supply products, touch panels, motors, sensors, laser markers, capacitors, inductors, resistors, circuit board materials, semiconductor device materials, molding compounds, and LCD panels. The Energy segment provides dry, primary/secondary lithium, nickel-metal hydride, and lithium-ion batteries; and cylindrical lithium-ion batteries for in-vehicle use, as well as storage battery modules and systems. It also offers digital cameras, video and audio equipment, television, telephones, and intercoms. The company was formerly known as Panasonic Corporation. Panasonic Holdings Corporation was founded in 1918 and is headquartered in Kadoma, Japan.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.