Reviewing Federal Screw Works (OTCMKTS:FSCR) and BRP (NASDAQ:DOOO)

Federal Screw Works (OTCMKTS:FSCR) and BRP (NASDAQ:DOOO) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings for Federal Screw Works and BRP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Screw Works	0	0	0	0	0.00
BRP	0	4	8	2	2.86

BRP has a consensus price target of $94.75, indicating a potential upside of 63.79%. Given BRP’s stronger consensus rating and higher probable upside, analysts plainly believe BRP is more favorable than Federal Screw Works.

Earnings & Valuation

This table compares Federal Screw Works and BRP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Screw Works	$97.55 million	0.12	$1.62 million	$0.71	11.84
BRP	$8.03 billion	0.53	-$154.60 million	$0.37	156.35

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

Profitability

This table compares Federal Screw Works and BRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Screw Works	0.99%	N/A	N/A
BRP	0.45%	67.30%	4.72%

Volatility & Risk

Federal Screw Works has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, BRP has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Summary

BRP beats Federal Screw Works on 10 of the 13 factors compared between the two stocks.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.

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.