BRP (NASDAQ:DOOO) and The Gym Group (OTCMKTS:GYYMF) Critical Review

The Gym Group (OTCMKTS:GYYMF) and BRP (NASDAQ:DOOO) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares The Gym Group and BRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Gym Group	N/A	N/A	N/A
BRP	0.45%	67.30%	4.72%

Analyst Ratings

This is a breakdown of current recommendations and price targets for The Gym Group and BRP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Gym Group	0	0	0	0	0.00
BRP	0	4	8	1	2.77

BRP has a consensus target price of $94.75, suggesting a potential upside of 53.24%. Given BRP’s stronger consensus rating and higher probable upside, analysts clearly believe BRP is more favorable than The Gym Group.

Earnings & Valuation

This table compares The Gym Group and BRP”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Gym Group	N/A	N/A	N/A	N/A	N/A
BRP	$8.03 billion	0.56	-$154.60 million	$0.37	167.11

The Gym Group has higher earnings, but lower revenue than BRP.

Summary

BRP beats The Gym Group on 8 of the 8 factors compared between the two stocks.

About The Gym Group

The Gym Group plc, together with its subsidiaries, operates a network of gym facilities under the Gym Group brand name in the United Kingdom. The company was founded in 2007 and is based in Croydon, the United Kingdom.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.