BRP (NASDAQ:DOOO – Get Free Report) and Adient (NYSE:ADNT – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Volatility & Risk
BRP has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Adient has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.
Earnings and Valuation
This table compares BRP and Adient”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BRP | $5.44 billion | 0.65 | -$154.60 million | ($0.41) | -118.05 |
| Adient | $14.69 billion | 0.11 | $18.00 million | ($3.20) | -6.17 |
Adient has higher revenue and earnings than BRP. BRP is trading at a lower price-to-earnings ratio than Adient, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BRP and Adient’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BRP | -0.55% | 54.71% | 3.88% |
| Adient | -1.86% | 7.70% | 1.90% |
Institutional and Insider Ownership
92.4% of Adient shares are held by institutional investors. 0.7% of Adient shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations for BRP and Adient, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BRP | 0 | 8 | 1 | 3 | 2.58 |
| Adient | 3 | 7 | 0 | 0 | 1.70 |
BRP currently has a consensus price target of $43.00, suggesting a potential downside of 11.16%. Adient has a consensus price target of $18.17, suggesting a potential downside of 7.98%. Given Adient’s higher probable upside, analysts clearly believe Adient is more favorable than BRP.
Summary
BRP beats Adient on 8 of the 15 factors compared between the two stocks.
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.
About Adient
Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.
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