Critical Survey: LiveWire Group (NYSE:LVWR) versus Thor Industries (NYSE:THO)

Thor Industries (NYSE:THO) and LiveWire Group (NYSE:LVWR) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Thor Industries and LiveWire Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thor Industries	$9.58 billion	0.43	$258.56 million	$2.31	34.42
LiveWire Group	$25.67 million	8.96	-$75.11 million	($0.37)	-3.04

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

Insider and Institutional Ownership

96.7% of Thor Industries shares are held by institutional investors. Comparatively, 0.9% of LiveWire Group shares are held by institutional investors. 4.7% of Thor Industries shares are held by company insiders. Comparatively, 0.4% of LiveWire Group shares are held 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.

Volatility and Risk

Thor Industries has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, LiveWire Group has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Thor Industries and LiveWire Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thor Industries	1	10	3	0	2.14
LiveWire Group	1	0	0	0	1.00

Thor Industries presently has a consensus target price of $92.33, indicating a potential upside of 16.13%. Given Thor Industries’ stronger consensus rating and higher probable upside, research analysts clearly believe Thor Industries is more favorable than LiveWire Group.

Profitability

This table compares Thor Industries and LiveWire Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thor Industries	2.67%	5.74%	3.51%
LiveWire Group	-234.48%	-198.18%	-60.98%

Summary

Thor Industries beats LiveWire Group on 12 of the 14 factors compared between the two stocks.

About Thor Industries

THOR Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers. The company provides its products through independent and non-franchise dealers. THOR Industries, Inc. was incorporated in 1980 and is based in Elkhart, Indiana.

About LiveWire Group

LiveWire Group, Inc. manufactures electric motorcycles in the United States and internationally. It operates in two segments Electric Motorcycles and STACYC. The company designs and sells electric motorcycles and parts, accessories, and apparel; and electric balance bikes for kids. It serves wholesalers, independent dealers, retailers, and through online. The company has strategic partnerships with Harley-Davidson, Inc. and the KYMCO Group. LiveWire Group, Inc. was founded in 2010 and is based in Milwaukee, Wisconsin. LiveWire Group, Inc. operates as a subsidiary of Harley-Davidson, Inc.