LCI Industries (NYSE: LCII) and Winnebago Industries (NYSE:WGO) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Insider and Institutional Ownership

99.6% of LCI Industries shares are owned by institutional investors. Comparatively, 83.0% of Winnebago Industries shares are owned by institutional investors. 3.6% of LCI Industries shares are owned by insiders. Comparatively, 3.4% of Winnebago Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
LCI Industries 7.07% 23.60% 16.10%
Winnebago Industries 4.61% 21.92% 10.18%

Valuation & Earnings

This table compares LCI Industries and Winnebago Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LCI Industries $1.68 billion 1.88 $129.67 million $5.61 22.59
Winnebago Industries $1.55 billion 1.09 $71.33 million $2.30 23.09

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

Dividends

LCI Industries pays an annual dividend of $2.20 per share and has a dividend yield of 1.7%. Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. LCI Industries pays out 39.2% of its earnings in the form of a dividend. Winnebago Industries pays out 17.4% 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 2 consecutive years. LCI Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

LCI Industries has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Winnebago Industries has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for LCI Industries and Winnebago Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 1 0 3 0 2.50
Winnebago Industries 0 3 4 0 2.57

LCI Industries presently has a consensus price target of $123.00, indicating a potential downside of 2.96%. Winnebago Industries has a consensus price target of $44.80, indicating a potential downside of 15.63%. Given LCI Industries’ higher possible upside, equities research analysts clearly believe LCI Industries is more favorable than Winnebago Industries.

Summary

LCI Industries beats Winnebago Industries on 13 of the 17 factors compared between the two stocks.

LCI Industries Company Profile

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.

Winnebago Industries Company Profile

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.

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