BRP (DOOO) and The Competition Critical Analysis

BRP (NASDAQ:DOOO) is one of 71 public companies in the “AUTO/TRUCK – ORIG” industry, but how does it compare to its competitors? We will compare BRP to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Profitability

This table compares BRP and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRP	-0.55%	54.71%	3.88%
BRP Competitors	-1,305.32%	-136.76%	-5.83%

Valuation and Earnings

This table compares BRP and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BRP	$5.44 billion	-$154.60 million	-127.71
BRP Competitors	$6.66 billion	$183.38 million	10.77

BRP’s competitors have higher revenue and earnings than BRP. BRP is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

66.2% of shares of all “AUTO/TRUCK – ORIG” companies are held by institutional investors. 8.4% of shares of all “AUTO/TRUCK – ORIG” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

BRP has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, BRP’s competitors have a beta of 3.11, indicating that their average stock price is 211% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for BRP and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRP	0	8	1	3	2.58
BRP Competitors	557	3138	4422	196	2.51

BRP currently has a consensus target price of $43.00, indicating a potential downside of 17.88%. As a group, “AUTO/TRUCK – ORIG” companies have a potential upside of 12.31%. Given BRP’s competitors higher possible upside, analysts plainly believe BRP has less favorable growth aspects than its competitors.

Dividends

BRP pays an annual dividend of $0.63 per share and has a dividend yield of 1.2%. BRP pays out -153.7% of its earnings in the form of a dividend. As a group, “AUTO/TRUCK – ORIG” companies pay a dividend yield of 2.4% and pay out 38.4% of their earnings in the form of a dividend. BRP has increased its dividend for 2 consecutive years.

Summary

BRP competitors beat BRP on 9 of the 15 factors compared.

BRP Company Profile

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.