BRP (NASDAQ:DOOO) & Strattec Security (NASDAQ:STRT) Head to Head Contrast

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

Valuation & Earnings

This table compares Strattec Security and BRP”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strattec Security	$565.07 million	0.56	$18.68 million	$6.60	11.50
BRP	$8.03 billion	0.66	-$154.60 million	$0.37	196.70

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

Insider and Institutional Ownership

68.9% of Strattec Security shares are owned by institutional investors. 3.9% of Strattec Security shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Strattec Security and BRP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strattec Security	0	1	1	1	3.00
BRP	0	4	8	2	2.86

BRP has a consensus price target of $94.75, indicating a potential upside of 30.19%. Given BRP’s higher probable upside, analysts clearly believe BRP is more favorable than Strattec Security.

Risk and Volatility

Strattec Security has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, BRP has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Strattec Security and BRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strattec Security	4.63%	12.33%	7.89%
BRP	0.45%	67.30%	4.72%

Summary

BRP beats Strattec Security on 8 of the 15 factors compared between the two stocks.

About Strattec Security

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company provides mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also offers full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.

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.