Lear (NYSE:LEA – Get Free Report) and Camping World (NYSE:CWH – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Dividends
Lear pays an annual dividend of $3.08 per share and has a dividend yield of 2.2%. Camping World pays an annual dividend of $0.37 per share and has a dividend yield of 4.8%. Lear pays out 30.8% of its earnings in the form of a dividend. Camping World pays out -24.8% 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. Camping World has raised its dividend for 1 consecutive years. Camping World is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Lear and Camping World, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lear | 0 | 10 | 4 | 1 | 2.40 |
| Camping World | 1 | 1 | 9 | 0 | 2.73 |
Profitability
This table compares Lear and Camping World’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lear | 2.25% | 13.69% | 4.71% |
| Camping World | -1.49% | -4.06% | -0.34% |
Earnings and Valuation
This table compares Lear and Camping World”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lear | $23.26 billion | 0.30 | $436.80 million | $10.00 | 14.00 |
| Camping World | $6.31 billion | 0.13 | -$89.80 million | ($1.49) | -5.19 |
Lear has higher revenue and earnings than Camping World. Camping World is trading at a lower price-to-earnings ratio than Lear, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Lear has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Camping World has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500.
Institutional & Insider Ownership
97.0% of Lear shares are held by institutional investors. Comparatively, 52.5% of Camping World shares are held by institutional investors. 1.0% of Lear shares are held by company insiders. Comparatively, 2.1% of Camping World shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Lear beats Camping World on 10 of the 18 factors compared between the two stocks.
About Lear
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.
About Camping World
Camping World Holdings, Inc., together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel planning and directories; and publications, as well as operates the Coast to Coast Resorts and Good Sam Campgrounds. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; various RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersports equipment and supplies, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. Additionally, the company facilitates an RV rental platform that connects travelers with RV owners; and designs, manufactures, and distributes RV and camping furniture, as well as a range of outdoor products and accessories. It serves customers through dealerships, and online and e-commerce platforms. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.
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