LNR vs. DOO, BYD, ATZ, WPK, RCH, NFI, LNF, CTC.A, MTY, and GIL
Should you be buying Linamar stock or one of its competitors? The main competitors of Linamar include BRP (DOO), Boyd Group Services (BYD), Aritzia (ATZ), Winpak (WPK), Richelieu Hardware (RCH), NFI Group (NFI), Leon's Furniture (LNF), Canadian Tire (CTC.A), MTY Food Group (MTY), and Gildan Activewear (GIL). These companies are all part of the "consumer cyclical" sector.
Linamar (TSE:LNR) and BRP (TSE:DOO) are both mid-cap consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, media sentiment, earnings, dividends, analyst recommendations, risk, community ranking, valuation and institutional ownership.
20.5% of Linamar shares are owned by institutional investors. Comparatively, 75.1% of BRP shares are owned by institutional investors. 33.5% of Linamar shares are owned by company insiders. Comparatively, 2.8% of BRP shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
BRP received 219 more outperform votes than Linamar when rated by MarketBeat users. Likewise, 77.78% of users gave BRP an outperform vote while only 63.72% of users gave Linamar an outperform vote.
Linamar has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, BRP has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500.
In the previous week, Linamar and Linamar both had 5 articles in the media. Linamar's average media sentiment score of 0.52 beat BRP's score of 0.41 indicating that Linamar is being referred to more favorably in the media.
Linamar presently has a consensus target price of C$88.60, suggesting a potential upside of 23.28%. BRP has a consensus target price of C$105.23, suggesting a potential upside of 12.96%. Given Linamar's stronger consensus rating and higher probable upside, equities analysts clearly believe Linamar is more favorable than BRP.
Linamar pays an annual dividend of C$1.00 per share and has a dividend yield of 1.4%. BRP pays an annual dividend of C$0.84 per share and has a dividend yield of 0.9%. Linamar pays out 10.9% of its earnings in the form of a dividend. BRP pays out 8.9% 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.
BRP has a net margin of 7.17% compared to Linamar's net margin of 5.55%. BRP's return on equity of 109.97% beat Linamar's return on equity.
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.
Summary
BRP beats Linamar on 13 of the 19 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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