Financial Contrast: Harley-Davidson (HOG) vs. Winnebago Industries (WGO)
Winnebago Industries (NYSE: WGO) and Harley-Davidson (NYSE:HOG) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitabiliy and risk.
Insider and Institutional Ownership
85.2% of Winnebago Industries shares are owned by institutional investors. Comparatively, 87.0% of Harley-Davidson shares are owned by institutional investors. 1.5% of Winnebago Industries shares are owned by company insiders. Comparatively, 0.7% of Harley-Davidson shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Winnebago Industries has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, Harley-Davidson has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Winnebago Industries and Harley-Davidson, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Winnebago Industries presently has a consensus target price of $32.75, suggesting a potential upside of 13.13%. Harley-Davidson has a consensus target price of $56.27, suggesting a potential upside of 1.40%. Given Winnebago Industries’ stronger consensus rating and higher possible upside, equities analysts plainly believe Winnebago Industries is more favorable than Harley-Davidson.
This table compares Winnebago Industries and Harley-Davidson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Harley-Davidson pays an annual dividend of $1.46 per share and has a dividend yield of 2.6%. Winnebago Industries pays out 20.8% of its earnings in the form of a dividend. Harley-Davidson pays out 41.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Winnebago Industries has increased its dividend for 6 consecutive years and Harley-Davidson has increased its dividend for 2 consecutive years.
Earnings and Valuation
This table compares Winnebago Industries and Harley-Davidson’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Winnebago Industries||$1.15 billion||0.80||$86.10 million||$1.92||15.08|
|Harley-Davidson||$5.75 billion||1.70||$1.18 billion||$3.51||15.81|
Harley-Davidson has higher revenue and earnings than Winnebago Industries. Winnebago Industries is trading at a lower price-to-earnings ratio than Harley-Davidson, indicating that it is currently the more affordable of the two stocks.
Harley-Davidson beats Winnebago Industries on 9 of the 16 factors compared between the two stocks.
About Winnebago Industries
Winnebago Industries, Inc. is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The Company offers products under categories, which include motorhomes, towables and other manufactured products. The Company produces all of its motorhomes in vertically integrated manufacturing facilities in Iowa and it produces all travel trailer and fifth wheel trailers in Indiana. The Company operates under the brand, Winnebago. The Company distributes its products primarily through independent dealers throughout the United States and Canada, who then retail the products to the end consumer.
Harley-Davidson, Inc. is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The Company operates in two segments: the Motorcycles & Related Products (Motorcycles) and the Financial Services. The Motorcycles segment consists of HDMC, which designs, manufactures and sells at wholesale on-road Harley-Davidson motorcycles, as well as motorcycle parts, accessories, general merchandise and related services. The Company manufactures and sells at wholesale cruiser and touring motorcycles. The Financial Services segment consists of HDFS, which provides wholesale and retail financing and insurance-related programs to the Harley-Davidson dealers and their retail customers. HDFS is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans for the purchase of Harley-Davidson motorcycles.
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