Garmin (NYSE:GRMN – Get Free Report) and Dorel Industries (OTCMKTS:DIIBF – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Analyst Ratings
This is a summary of current ratings and price targets for Garmin and Dorel Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Garmin | 0 | 5 | 3 | 1 | 2.56 |
| Dorel Industries | 0 | 1 | 0 | 0 | 2.00 |
Garmin presently has a consensus target price of $313.71, suggesting a potential upside of 6.64%. Given Garmin’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Garmin is more favorable than Dorel Industries.
Risk and Volatility
Garmin has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.
Profitability
This table compares Garmin and Dorel Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Garmin | 24.47% | 20.95% | 17.06% |
| Dorel Industries | -12.73% | N/A | -11.89% |
Earnings and Valuation
This table compares Garmin and Dorel Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Garmin | $7.67 billion | 7.40 | $1.66 billion | $9.70 | 30.33 |
| Dorel Industries | $1.19 billion | 0.03 | -$142.22 million | ($4.16) | -0.23 |
Garmin has higher revenue and earnings than Dorel Industries. Dorel Industries is trading at a lower price-to-earnings ratio than Garmin, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
81.6% of Garmin shares are held by institutional investors. 14.8% of Garmin shares are held by company insiders. Comparatively, 19.3% of Dorel Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Garmin beats Dorel Industries on 13 of the 15 factors compared between the two stocks.
About Garmin
Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.
About Dorel Industries
Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.
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