Subaru (OTCMKTS:FUJHY) versus Winnebago Industries (NYSE:WGO) Head-To-Head Comparison

Subaru (OTCMKTS:FUJHY) and Winnebago Industries (NYSE:WGO) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for Subaru and Winnebago Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Subaru	1	1	0	0	1.50
Winnebago Industries	3	7	3	0	2.00

Winnebago Industries has a consensus price target of $34.11, indicating a potential upside of 8.01%. Given Winnebago Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Winnebago Industries is more favorable than Subaru.

Volatility and Risk

Subaru has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Winnebago Industries has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Subaru shares are held by institutional investors. 5.4% of Winnebago Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Subaru and Winnebago Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Subaru	$31.79 billion	0.40	$599.56 million	$0.40	21.97
Winnebago Industries	$2.70 billion	0.33	$34.50 million	$1.21	26.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Subaru	1.77%	3.04%	1.58%
Winnebago Industries	1.28%	4.16%	2.47%

Dividends

Subaru pays an annual dividend of $0.22 per share and has a dividend yield of 2.5%. Winnebago Industries pays an annual dividend of $1.44 per share and has a dividend yield of 4.6%. Subaru pays out 55.0% of its earnings in the form of a dividend. Winnebago Industries pays out 119.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Winnebago Industries has increased its dividend for 6 consecutive years. Winnebago Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Winnebago Industries beats Subaru on 11 of the 17 factors compared between the two stocks.

About Subaru

Subaru Corporation manufactures and sells automobiles and aerospace products in Japan, rest of Asia, North America, Europe, and internationally. It operates through three segments: Automotive, Aerospace, and Others. The company manufactures, sells, and repairs passenger cars and their components, aircrafts, aerospace-related machinery, and related components; and rents and manages real estate properties. It is also involved in the shipping, land freight, and warehousing of vehicles; leasing and rental of vehicles; credit and financing of vehicles; inspection, service, and maintenance of aircrafts; and IT system development and operation services. The company was formerly known as Fuji Heavy Industries Ltd. and changed its name to Subaru Corporation in April 2017. The company was founded in 1917 and is headquartered in Tokyo, Japan.

About Winnebago Industries

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates through three segments: Towable RV, Motorhome RV, and Marine. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names. The company also offers motorhome RV, a self-propelled mobile dwelling used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles under the Winnebago and Newmar brand names. In addition, it offers other specialty commercial vehicles for law enforcement command centers, mobile medical clinics, and mobile office spaces; commercial vehicles as bare shells to third-party up fitters, as well as manufactures and sells recreational boats under the Chris-Craft and Barletta brand names. Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles. It sells its products primarily through independent dealers in the United States, Canada, and internationally. Winnebago Industries, Inc. was incorporated in 1958 and is based in Eden Prairie, Minnesota.