Reviewing BRP (NASDAQ:DOOO) & Wabash National (NYSE:WNC)

Wabash National (NYSE:WNC) and BRP (NASDAQ:DOOO) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Valuation and Earnings

This table compares Wabash National and BRP”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wabash National	$1.54 billion	0.20	$211.45 million	($1.60)	-4.84
BRP	$8.03 billion	0.55	-$154.60 million	$0.37	164.05

Wabash National has higher earnings, but lower revenue than BRP. Wabash National is trading at a lower price-to-earnings ratio than BRP, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Wabash National has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, BRP has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

97.1% of Wabash National shares are owned by institutional investors. 2.8% of Wabash National shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Wabash National and BRP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wabash National	1	2	0	0	1.67
BRP	0	4	8	1	2.77

Wabash National presently has a consensus target price of $8.75, indicating a potential upside of 12.96%. BRP has a consensus target price of $94.75, indicating a potential upside of 56.10%. Given BRP’s stronger consensus rating and higher possible upside, analysts plainly believe BRP is more favorable than Wabash National.

Dividends

Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 4.1%. BRP pays an annual dividend of $0.61 per share and has a dividend yield of 1.0%. Wabash National pays out -20.0% of its earnings in the form of a dividend. BRP pays out 164.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRP has increased its dividend for 2 consecutive years. Wabash National is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Wabash National and BRP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wabash National	-4.41%	-30.16%	-8.79%
BRP	0.45%	67.30%	4.72%

Summary

BRP beats Wabash National on 12 of the 18 factors compared between the two stocks.

About Wabash National

Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.