Brunswick Corporation (NYSE: BC) and Vista Outdoor (NYSE:VSTO) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitabiliy, institutional ownership and valuation.

Institutional and Insider Ownership

99.6% of Brunswick Corporation shares are held by institutional investors. Comparatively, 99.5% of Vista Outdoor shares are held by institutional investors. 1.0% of Brunswick Corporation shares are held by company insiders. Comparatively, 1.5% of Vista Outdoor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Brunswick Corporation and Vista Outdoor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brunswick Corporation $4.69 billion 1.07 $602.40 million $3.15 17.77
Vista Outdoor $2.55 billion 0.50 $306.74 million ($4.72) -4.77

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

Dividends

Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.2%. Vista Outdoor does not pay a dividend. Brunswick Corporation pays out 21.0% of its earnings in the form of a dividend. Brunswick Corporation has raised its dividend for 4 consecutive years.

Risk & Volatility

Brunswick Corporation has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, Vista Outdoor has a beta of -0.16, meaning that its share price is 116% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Brunswick Corporation and Vista Outdoor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick Corporation 0 3 8 0 2.73
Vista Outdoor 0 6 5 0 2.45

Brunswick Corporation currently has a consensus target price of $65.30, indicating a potential upside of 16.67%. Vista Outdoor has a consensus target price of $30.05, indicating a potential upside of 33.50%. Given Vista Outdoor’s higher possible upside, analysts plainly believe Vista Outdoor is more favorable than Brunswick Corporation.

Profitability

This table compares Brunswick Corporation and Vista Outdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brunswick Corporation 6.13% 23.35% 10.44%
Vista Outdoor -10.78% 7.62% 3.45%

Summary

Brunswick Corporation beats Vista Outdoor on 14 of the 17 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 Vista Outdoor

Vista Outdoor Inc. is a designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets. The Company operates through two segments: Shooting Sports and Outdoor Products. Its Shooting Sports segment designs, develops, produces and sources ammunition and firearms for the hunting and sport shooting enthusiast markets, as well as ammunition for local law enforcement, the United States Government and international markets. Its Outdoor Products segment product lines include archery/hunting accessories, global eyewear and sport protection, golf, hydration products, optics, shooting accessories, tactical products and water sports. The Company serves the outdoor sports and recreation markets through a diverse portfolio of over 40 brands. It serves a range of end consumers, including outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals. It offers cooking solutions through Camp Chef brand.

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