LCI Industries (LCII) vs. Vista Outdoor (NYSE:VSTO) Head to Head Analysis

LCI Industries (NYSE: LCII) and Vista Outdoor (NYSE:VSTO) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Earnings and Valuation

This table compares LCI Industries and Vista Outdoor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LCI Industries $1.68 billion 1.61 $129.67 million $5.61 19.27
Vista Outdoor $2.55 billion 0.34 -$274.45 million ($8.18) -1.86

LCI Industries has higher earnings, but lower revenue than Vista Outdoor. Vista Outdoor is trading at a lower price-to-earnings ratio than LCI Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for LCI Industries and Vista Outdoor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 1 0 2 0 2.33
Vista Outdoor 1 6 2 0 2.11

LCI Industries presently has a consensus price target of $112.00, suggesting a potential upside of 3.61%. Vista Outdoor has a consensus price target of $23.33, suggesting a potential upside of 53.51%. Given Vista Outdoor’s higher probable upside, analysts plainly believe Vista Outdoor is more favorable than LCI Industries.

Dividends

LCI Industries pays an annual dividend of $2.20 per share and has a dividend yield of 2.0%. Vista Outdoor does not pay a dividend. LCI Industries pays out 39.2% of its earnings in the form of a dividend.

Profitability

This table compares LCI Industries and Vista Outdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LCI Industries 7.07% 23.60% 16.10%
Vista Outdoor -19.88% 5.76% 2.42%

Insider & Institutional Ownership

98.3% of LCI Industries shares are held by institutional investors. 3.6% of LCI Industries shares are held by company insiders. Comparatively, 1.5% of Vista Outdoor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

LCI Industries beats Vista Outdoor on 11 of the 14 factors compared between the two stocks.

About LCI Industries

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

About Vista Outdoor

Vista Outdoor Inc. is a designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets. The Company operates through two segments: Shooting Sports and Outdoor Products. Its Shooting Sports segment designs, develops, produces and sources ammunition and firearms for the hunting and sport shooting enthusiast markets, as well as ammunition for local law enforcement, the United States Government and international markets. Its Outdoor Products segment product lines include archery/hunting accessories, global eyewear and sport protection, golf, hydration products, optics, shooting accessories, tactical products and water sports. The Company serves the outdoor sports and recreation markets through a diverse portfolio of over 40 brands. It serves a range of end consumers, including outdoor enthusiasts, hunters and recreational shooters, athletes, as well as law enforcement and military professionals. It offers cooking solutions through Camp Chef brand.

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