Delphi Technologies (NYSE: DLPH) and Briggs & Stratton (NYSE:BGG) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
This table compares Delphi Technologies and Briggs & Stratton’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Briggs & Stratton||1.31%||10.25%||3.61%|
This is a summary of current recommendations for Delphi Technologies and Briggs & Stratton, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Briggs & Stratton||0||3||0||0||2.00|
Delphi Technologies presently has a consensus price target of $63.17, indicating a potential upside of 29.04%. Briggs & Stratton has a consensus price target of $26.00, indicating a potential upside of 15.10%. Given Delphi Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Delphi Technologies is more favorable than Briggs & Stratton.
Earnings and Valuation
This table compares Delphi Technologies and Briggs & Stratton’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Delphi Technologies||$4.85 billion||0.89||$285.00 million||$3.29||14.88|
|Briggs & Stratton||$1.79 billion||0.54||$56.65 million||$1.12||20.17|
Delphi Technologies has higher revenue and earnings than Briggs & Stratton. Delphi Technologies is trading at a lower price-to-earnings ratio than Briggs & Stratton, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
86.5% of Delphi Technologies shares are owned by institutional investors. Comparatively, 84.6% of Briggs & Stratton shares are owned by institutional investors. 4.2% of Briggs & Stratton shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Delphi Technologies pays an annual dividend of $0.17 per share and has a dividend yield of 0.3%. Briggs & Stratton pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Delphi Technologies pays out 5.2% of its earnings in the form of a dividend. Briggs & Stratton pays out 50.0% 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. Delphi Technologies has increased its dividend for 6 consecutive years.
Delphi Technologies beats Briggs & Stratton on 10 of the 16 factors compared between the two stocks.
About Delphi Technologies
Delphi Technologies PLC is a develops, designs and manufactures powertrain technologies for original equipment manufacturers (OEMs). The Company’s segments is Products & Service Solutions (PSS). PSS segment sells aftermarket products to independent aftermarket and original equipment service customers. It supplies a full suite of aftermarket products, including engine control modules, pumps, injectors, fuel modules, exhaust gas recirculation valves, brakes, steering and suspension. The Company operates 20 manufacturing facilities and 12 technical centers in 24 countries.
About Briggs & Stratton
Briggs & Stratton Corporation is a producer of gasoline engines for outdoor power equipment. The Company designs, manufactures, markets, sells and services the various products for original equipment manufacturers (OEMs) around the world. It also markets and sells related service parts and accessories for its engines. Its subsidiary is a marketer of pressure washers, and it is a designer, manufacturer and marketer of power generation, lawn and garden, turf care and job site products through its Simplicity, Snapper, Snapper Pro, Ferris, PowerBoss, Allmand, Billy Goat, Murray, Branco and Victa brands. It operates in over 100 countries on six continents. It operates through two segments: Engines and Products. Its Engines segment sells engines around the world, primarily to OEMs of lawn and garden equipment and other gasoline engine-powered equipment. Its Products segment designs, manufactures and markets a range of outdoor power equipment, job site products and related accessories.
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