Briggs & Stratton (BGG) vs. Brunswick (BC) Head-To-Head Contrast

Briggs & Stratton (NYSE: BGG) and Brunswick (NYSE:BC) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Earnings and Valuation

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This table compares Briggs & Stratton and Brunswick’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Briggs & Stratton $1.79 billion 0.49 $56.65 million $1.31 15.54
Brunswick $4.51 billion 1.14 $146.40 million $3.89 15.04

Brunswick has higher revenue and earnings than Briggs & Stratton. Brunswick is trading at a lower price-to-earnings ratio than Briggs & Stratton, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Briggs & Stratton has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Brunswick has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Dividends

Briggs & Stratton pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Brunswick pays an annual dividend of $0.76 per share and has a dividend yield of 1.3%. Briggs & Stratton pays out 42.7% of its earnings in the form of a dividend. Brunswick pays out 19.5% 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. Briggs & Stratton has increased its dividend for 6 consecutive years and Brunswick has increased its dividend for 5 consecutive years. Briggs & Stratton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

84.7% of Briggs & Stratton shares are owned by institutional investors. Comparatively, 93.8% of Brunswick shares are owned by institutional investors. 4.2% of Briggs & Stratton shares are owned by insiders. Comparatively, 1.0% of Brunswick shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Briggs & Stratton and Brunswick, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Briggs & Stratton 0 3 0 0 2.00
Brunswick 0 2 13 0 2.87

Briggs & Stratton presently has a consensus target price of $26.00, suggesting a potential upside of 27.70%. Brunswick has a consensus target price of $69.07, suggesting a potential upside of 18.04%. Given Briggs & Stratton’s higher possible upside, research analysts plainly believe Briggs & Stratton is more favorable than Brunswick.

Profitability

This table compares Briggs & Stratton and Brunswick’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%
Brunswick 3.09% 22.52% 10.20%

Summary

Brunswick beats Briggs & Stratton on 12 of the 17 factors compared between the two stocks.

About Briggs & Stratton

Briggs & Stratton Corporation designs, manufactures, markets, sells, and services gasoline engines for outdoor power equipment to the original equipment manufacturers in the United States. It operates in two segments, Engines and Products. The Engines segment offers four-cycle aluminum alloy gasoline engines that are used primarily by the lawn and garden equipment industry. Its products are used in various lawn and garden equipment applications, including walk-behind lawn mowers, riding lawn mowers, garden tillers, and snow throwers, as well as products for industrial, construction, agricultural, and other consumer applications that include portable and standby generators, pumps, and pressure washers. This segment also manufactures and sells replacement engines and service parts to sales and service distributors. The Products segment primarily provides a line of portable and standby generators, pressure washers, snow throwers, lawn and garden power equipment, turf care, and job site products. This segment sells its products through various channels of retail distribution, including consumer home centers, warehouse clubs, mass merchants, and independent dealers and distributors under its own brands, such as Briggs & Stratton, Simplicity, Snapper, Snapper Pro, Ferris, Allmand, Billy Goat, Murray, Branco, and Victa, as well as other brands comprising Craftsman and Troy-Bilt. The company also exports its products to customers in Europe, Asia, Australia, and Canada. Briggs & Stratton Corporation was founded in 1908 and is headquartered in Wauwatosa, Wisconsin.

About Brunswick

Brunswick Corporation is a designer, manufacturer and marketer of recreation products. The Company operates through three segments: Marine Engine, Boat and Fitness. The Company’s product includes marine engines, boats, fitness equipment and active recreation products. The Company’s engine-related products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems; and marine parts and accessories. Its boat offerings include: fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; utility boats; deck boats; inflatable boats; and heavy-gauge aluminum boats. Its fitness products include cardiovascular and strength training equipment for both the commercial and consumer markets. It also sells products for active aging, rehabilitation, productive well-being, a complete line of billiards tables and other game room tables and accessories.

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