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.
BRP (TSE:DOO) and Linamar (TSE:LNR) are both mid-cap consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, media sentiment, profitability, community ranking and earnings.
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.
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.
In the previous week, BRP had 2 more articles in the media than Linamar. MarketBeat recorded 5 mentions for BRP and 3 mentions for Linamar. BRP's average media sentiment score of 0.96 beat Linamar's score of 0.45 indicating that Linamar is being referred to more favorably in the news media.
75.1% of BRP shares are held by institutional investors. Comparatively, 20.5% of Linamar shares are held by institutional investors. 2.8% of BRP shares are held by company insiders. Comparatively, 33.5% of Linamar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
BRP pays an annual dividend of C$0.84 per share and has a dividend yield of 0.9%. Linamar pays an annual dividend of C$1.00 per share and has a dividend yield of 1.4%. BRP pays out 8.9% of its earnings in the form of a dividend. Linamar pays out 10.9% 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 beta of 2.37, suggesting that its share price is 137% more volatile than the S&P 500. Comparatively, Linamar has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.
BRP presently has a consensus target price of C$105.23, indicating a potential upside of 12.96%. Linamar has a consensus target price of C$88.60, indicating a potential upside of 23.28%. Given BRP's stronger consensus rating and higher probable upside, analysts clearly believe Linamar is more favorable than BRP.
BRP has a net margin of 7.17% compared to BRP's net margin of 5.55%. Linamar's return on equity of 109.97% beat BRP's return on equity.
Summary
BRP beats Linamar on 14 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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