Reviewing NIO (NYSE:NIO) and Winnebago Industries (NYSE:WGO)

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

Valuation and Earnings

This table compares NIO and Winnebago Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NIO	$12.51 billion	0.72	-$2.14 billion	($0.27)	-13.42
Winnebago Industries	$2.84 billion	0.27	$25.70 million	$1.36	19.81

Winnebago Industries has lower revenue, but higher earnings than NIO. NIO 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 NIO and Winnebago Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NIO	-3.95%	-111.37%	-3.62%
Winnebago Industries	1.36%	4.65%	2.74%

Institutional and Insider Ownership

48.5% of NIO shares are owned by institutional investors. 1.0% of NIO shares are owned by insiders. Comparatively, 4.9% of Winnebago Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

NIO has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Winnebago Industries has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for NIO and Winnebago Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NIO	2	7	6	0	2.27
Winnebago Industries	0	9	3	0	2.25

NIO currently has a consensus target price of $5.87, indicating a potential upside of 61.88%. Winnebago Industries has a consensus target price of $36.22, indicating a potential upside of 34.46%. Given NIO’s stronger consensus rating and higher probable upside, equities research analysts clearly believe NIO is more favorable than Winnebago Industries.

Summary

Winnebago Industries beats NIO on 8 of the 14 factors compared between the two stocks.

About NIO

NIO Inc. designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

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.