BRP (NASDAQ:DOOO) versus Johnson Outdoors (NASDAQ:JOUT) Financial Contrast

Johnson Outdoors (NASDAQ:JOUT) and BRP (NASDAQ:DOOO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares Johnson Outdoors and BRP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Outdoors	$592.41 million	0.85	-$34.29 million	($1.52)	-31.72
BRP	$8.03 billion	0.58	-$154.60 million	$0.37	172.57

Johnson Outdoors has higher earnings, but lower revenue than BRP. Johnson Outdoors is trading at a lower price-to-earnings ratio than BRP, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

64.0% of Johnson Outdoors shares are owned by institutional investors. 28.2% of Johnson Outdoors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Johnson Outdoors has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, BRP has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Dividends

Johnson Outdoors pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. BRP pays an annual dividend of $0.61 per share and has a dividend yield of 1.0%. Johnson Outdoors pays out -86.8% of its earnings in the form of a dividend. BRP pays out 164.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Johnson Outdoors has increased its dividend for 11 consecutive years and BRP has increased its dividend for 2 consecutive years. Johnson Outdoors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Johnson Outdoors and BRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson Outdoors	-2.33%	2.52%	1.74%
BRP	0.45%	67.30%	4.72%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Johnson Outdoors and BRP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Outdoors	1	1	0	0	1.50
BRP	0	4	8	1	2.77

BRP has a consensus price target of $94.75, suggesting a potential upside of 48.39%. Given BRP’s stronger consensus rating and higher probable upside, analysts clearly believe BRP is more favorable than Johnson Outdoors.

Summary

BRP beats Johnson Outdoors on 11 of the 18 factors compared between the two stocks.

About Johnson Outdoors

Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide. It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving. The Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing. This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors. The Camping segment provides consumer, commercial, and military tents and accessories; camping stoves; other recreational camping products; and portable outdoor cooking systems. This segment sells its products under the Eureka! and Jetboil brands through specialty stores, sporting goods stores, internet retailers, and direct to consumers. The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under Old Town and Carlisle brands. The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name. This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, and public safety units. It sells its products through websites. The company was founded in 1970 and is headquartered in Racine, Wisconsin.

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.