Critical Analysis: Briggs & Stratton (BGG) and Coates International (COTE)
Briggs & Stratton (NYSE:BGG) and Coates International (OTCMKTS:COTE) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Briggs & Stratton and Coates International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Briggs & Stratton||$1.88 billion||0.33||-$11.32 million||$1.29||11.33|
|Coates International||$10,000.00||5.67||-$8.38 million||N/A||N/A|
Briggs & Stratton pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Coates International does not pay a dividend. Briggs & Stratton pays out 43.4% of its earnings in the form of a dividend. Briggs & Stratton has raised its dividend for 6 consecutive years.
Insider & Institutional Ownership
82.0% of Briggs & Stratton shares are held by institutional investors. Comparatively, 0.0% of Coates International shares are held by institutional investors. 6.3% of Briggs & Stratton 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.
This table compares Briggs & Stratton and Coates International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Briggs & Stratton||-2.04%||8.33%||3.03%|
This is a summary of recent recommendations for Briggs & Stratton and Coates International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Briggs & Stratton||0||4||1||0||2.20|
Briggs & Stratton presently has a consensus target price of $22.67, suggesting a potential upside of 55.14%. Given Briggs & Stratton’s higher probable upside, equities analysts plainly believe Briggs & Stratton is more favorable than Coates International.
Risk & Volatility
Briggs & Stratton has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Coates International has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
Briggs & Stratton beats Coates International on 10 of the 14 factors compared between the two stocks.
About Briggs & Stratton
Briggs & Stratton Corporation designs, manufactures, markets, sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers in the United States. It operates in two segments, Engines and Products. The Engines segment offers four-cycle aluminum alloy gasoline engines that are used primarily by the lawn and garden equipment industry. This segment's products are used in various lawn and garden equipment applications, including walk-behind lawn mowers, riding lawn mowers, garden tillers, and snow throwers, as well as products for industrial, construction, agricultural, and other consumer applications, such as portable and standby generators, pumps, and pressure washers. It also manufactures and sells replacement engines and service parts to sales and service distributors. This segment primarily sells commercial engines under the Vanguard brand. The Products segment primarily provides a line of lawn and garden power equipment, turf care products, portable and standby generators, pressure washers, snow throwers, and job site products. This segment sells its products through various channels of retail distribution comprising consumer home centers, warehouse clubs, mass merchants, independent dealers and distributors, and online merchants under its own brands that include the Briggs & Stratton, Simplicity, Snapper, Snapper Pro, Ferris, Allmand, Billy Goat, Murray, Branco, and Victa, as well as other brands, which comprise Craftsman and Troy-Bilt. The company also exports its products to customers in Europe, Asia, Australia, and Canada. Briggs & Stratton Corporation was founded in 1908 and is headquartered in Wauwatosa, Wisconsin.
About Coates International
Coates International, Ltd. develops and sells Coates Spherical Rotary Valve (CSRV) system technology for use in various piston-driven internal combustion engines in the United States and internationally. The company's CSRV system technology replaces the intake and exhausts conventional poppet valves used in various piston-driven stationary, automotive, motorcycle, and marine engines. Its CSRV system technology is used in various applications, including engines for electric power generators for home use, industrial complexes, and grid installations; and engines to power motorcycles, automobiles, light and heavy trucks, machinery, railroads, marine engines, military equipment, light aircraft, helicopters, lawn mowers, snowmobiles and jet skis, etc. Coates International, Ltd. was founded in 1988 and is headquartered in Wall Township, New Jersey.
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