Critical Survey: Polaris Industries (PII) vs. T.J.T. (AXLE)

Polaris Industries (NYSE:PII) and T.J.T. (OTCMKTS:AXLE) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Valuation and Earnings

This table compares Polaris Industries and T.J.T.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Polaris Industries $5.43 billion 1.11 $172.49 million $4.85 20.06
T.J.T. N/A N/A N/A N/A N/A

Polaris Industries has higher revenue and earnings than T.J.T..

Dividends

Polaris Industries pays an annual dividend of $2.40 per share and has a dividend yield of 2.5%. T.J.T. does not pay a dividend. Polaris Industries pays out 49.5% of its earnings in the form of a dividend. Polaris Industries has increased its dividend for 6 consecutive years.

Institutional & Insider Ownership

83.4% of Polaris Industries shares are held by institutional investors. 2.4% of Polaris Industries shares are held 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 Recommendations

This is a breakdown of current ratings and recommmendations for Polaris Industries and T.J.T., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polaris Industries 0 10 4 1 2.40
T.J.T. 0 0 0 0 N/A

Polaris Industries presently has a consensus target price of $110.17, indicating a potential upside of 13.25%. Given Polaris Industries’ higher possible upside, analysts plainly believe Polaris Industries is more favorable than T.J.T..

Volatility and Risk

Polaris Industries has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, T.J.T. has a beta of -4.37, meaning that its stock price is 537% less volatile than the S&P 500.

Profitability

This table compares Polaris Industries and T.J.T.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Polaris Industries 4.68% 43.14% 11.59%
T.J.T. N/A N/A N/A

Summary

Polaris Industries beats T.J.T. on 12 of the 13 factors compared between the two stocks.

Polaris Industries Company Profile

Polaris Industries Inc. designs, engineers, manufactures, and markets power sports vehicles worldwide. The company operates through four segments: Off-Road Vehicles (ORVs)/Snowmobiles, Motorcycles, Global Adjacent Markets, and Aftermarket. It offers ORVs, including all-terrain vehicles and side-by-side vehicles for recreational and utility use; snowmobiles; motorcycles; and low emission, light duty hauling, passenger, commercial, and industrial vehicles, as well as snow bike conversion kit systems. The company also produces or supplies various replacement parts and accessories consisting of winches, bumpers/brush guards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oils for ORVs; covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oils, and lubricants for snowmobiles; and saddle bags, handlebars, backrests, exhausts, windshields, seats, oils, and various chrome accessories for motorcycles. In addition, it sells recreational apparel, such as helmets, jackets, gloves, pants, hats, goggles, boots, bibs, and leathers through a network of dealers and distributors, as well as through online. The company markets its products under the RZR, RANGER, GENERAL, Sportsman, Polaris ACE, RANGER XP, RZR XP, Turbo DYNAMIX, Timbersled, Indian Motorcycles, Slingshot, GEM, Goupil, Aixam, Taylor-Dunn, DAGOR, Sportsman MV, MRZR, Kolpin, Pro Armor, Klim, 509, and Trail Tech brands. Further, it manufactures, distributes, retails, and installs aftermarket parts and accessories for light trucks, jeeps, sport-utility vehicles, and other four-wheel drive vehicles under the Pro Comp, Smittybilt, Rubicon Express, Poison Spyder, Trail Master, LRG, and G2 Axle & Gear brands through its 84 brick-and-mortar 4 Wheel Parts retail centers, call centers, and e-commerce sites. Polaris Industries Inc. was founded in 1954 and is headquartered in Medina, Minnesota.

T.J.T. Company Profile

T.J.T., Inc. engages in repairing and reconditioning axles and tires for the manufactured housing industry in the United States. It also distributes vinyl siding products, piers, and related set-up products, as well as skirting and other aftermarket accessories. The company serves primarily manufactured housing factories, manufactured housing dealers, contractors, and site-built housing market, as well as to recreational vehicle and residential markets in Idaho, Oregon, California, Utah, Washington, Montana, Colorado, Minnesota, New Mexico, Indiana, Iowa, Nevada, Wisconsin, and North Dakota. T.J.T., Inc. was founded in 1977 and is headquartered in Eagle, Idaho.

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