Critical Survey: Garmin (NYSE:GRMN) vs. Hayward (NYSE:HAYW)

Hayward (NYSE:HAYW) and Garmin (NYSE:GRMN) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Valuation & Earnings

This table compares Hayward and Garmin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$1.05 billion	3.40	$118.65 million	$0.62	26.60
Garmin	$6.30 billion	6.30	$1.41 billion	$8.12	25.40

Garmin has higher revenue and earnings than Hayward. Garmin is trading at a lower price-to-earnings ratio than Hayward, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hayward and Garmin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hayward	0	4	1	0	2.20
Garmin	1	2	2	1	2.50

Hayward currently has a consensus target price of $18.00, indicating a potential upside of 9.12%. Garmin has a consensus target price of $244.40, indicating a potential upside of 18.50%. Given Garmin’s stronger consensus rating and higher probable upside, analysts plainly believe Garmin is more favorable than Hayward.

Volatility & Risk

Hayward has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Garmin has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Institutional & Insider Ownership

81.6% of Garmin shares are owned by institutional investors. 5.1% of Hayward shares are owned by insiders. Comparatively, 19.5% of Garmin shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Hayward and Garmin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hayward	12.54%	11.24%	5.49%
Garmin	22.63%	19.42%	15.73%

Summary

Garmin beats Hayward on 13 of the 15 factors compared between the two stocks.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.