BRP (NASDAQ:DOOO – Get Free Report) and Wabash National (NYSE:WNC – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Volatility and Risk
BRP has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Wabash National has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for BRP and Wabash National, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BRP | 0 | 4 | 8 | 1 | 2.77 |
| Wabash National | 1 | 2 | 0 | 0 | 1.67 |
Profitability
This table compares BRP and Wabash National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BRP | 0.45% | 67.30% | 4.72% |
| Wabash National | -4.41% | -30.16% | -8.79% |
Dividends
BRP pays an annual dividend of $0.61 per share and has a dividend yield of 1.0%. Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 4.1%. BRP pays out 164.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wabash National pays out -20.0% of its earnings in the form of a dividend. BRP has raised its dividend for 2 consecutive years. Wabash National is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
97.1% of Wabash National shares are owned by institutional investors. 2.8% of Wabash National shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares BRP and Wabash National”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BRP | $8.03 billion | 0.55 | -$154.60 million | $0.37 | 164.05 |
| Wabash National | $1.54 billion | 0.20 | $211.45 million | ($1.60) | -4.84 |
Wabash National has lower revenue, but higher earnings than BRP. Wabash National is trading at a lower price-to-earnings ratio than BRP, indicating that it is currently the more affordable of the two stocks.
Summary
BRP beats Wabash National on 12 of the 18 factors compared between the two stocks.
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.
About Wabash National
Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.
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