LNR vs. DOO, ATZ, WPK, RCH, BYD, LNF, CTC.A, NFI, MTY, and TOY
Should you be buying Linamar stock or one of its competitors? The main competitors of Linamar include BRP (DOO), Aritzia (ATZ), Winpak (WPK), Richelieu Hardware (RCH), Boyd Group Services (BYD), Leon's Furniture (LNF), Canadian Tire (CTC.A), NFI Group (NFI), MTY Food Group (MTY), and Spin Master (TOY). These companies are all part of the "consumer cyclical" sector.
BRP (TSE:DOO) and Linamar (TSE:LNR) are both mid-cap consumer cyclical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, media sentiment, valuation, analyst recommendations, risk, institutional ownership and community ranking.
BRP has higher revenue and earnings than Linamar. Linamar is trading at a lower price-to-earnings ratio than BRP, indicating that it is currently the more affordable of the two stocks.
BRP has a net margin of 8.56% compared to BRP's net margin of 5.17%. Linamar's return on equity of 210.20% beat BRP's return on equity.
BRP pays an annual dividend of C$0.72 per share and has a dividend yield of 0.8%. Linamar pays an annual dividend of C$1.00 per share and has a dividend yield of 1.5%. BRP pays out 6.2% of its earnings in the form of a dividend. Linamar pays out 12.2% 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.
72.0% of BRP shares are owned by institutional investors. Comparatively, 20.8% of Linamar shares are owned by institutional investors. 2.9% of BRP shares are owned by insiders. Comparatively, 35.9% of Linamar shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
BRP has a beta of 2.41, meaning that its share price is 141% more volatile than the S&P 500. Comparatively, Linamar has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
In the previous week, BRP had 2 more articles in the media than Linamar. MarketBeat recorded 4 mentions for BRP and 2 mentions for Linamar. Linamar's average media sentiment score of 0.15 beat BRP's score of -0.04 indicating that BRP is being referred to more favorably in the media.
BRP received 220 more outperform votes than Linamar when rated by MarketBeat users. Likewise, 77.78% of users gave BRP an outperform vote while only 64.07% of users gave Linamar an outperform vote.
BRP presently has a consensus target price of C$105.23, indicating a potential upside of 12.01%. Linamar has a consensus target price of C$82.20, indicating a potential upside of 23.80%. Given BRP's stronger consensus rating and higher possible upside, analysts plainly believe Linamar is more favorable than BRP.
Summary
BRP beats Linamar on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LNR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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