Head to Head Survey: Shimano (OTCMKTS:SMNNY) vs. Brunswick (NYSE:BC)

Shimano (OTCMKTS:SMNNY) and Brunswick (NYSE:BC) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Shimano and Brunswick”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$3.12 billion	2.96	$227.74 million	$0.26	41.04
Brunswick	$5.36 billion	0.94	-$137.30 million	($2.10)	-36.90

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

Dividends

Shimano pays an annual dividend of $0.13 per share and has a dividend yield of 1.2%. Brunswick pays an annual dividend of $1.76 per share and has a dividend yield of 2.3%. Shimano pays out 50.0% of its earnings in the form of a dividend. Brunswick pays out -83.8% 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. Brunswick has raised its dividend for 13 consecutive years. Brunswick is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

0.0% of Shimano shares are held by institutional investors. Comparatively, 99.3% of Brunswick shares are held by institutional investors. 1.0% of Brunswick shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Shimano and Brunswick, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimano	0	0	0	0	0.00
Brunswick	1	7	6	1	2.47

Brunswick has a consensus target price of $86.71, suggesting a potential upside of 11.91%. Given Brunswick’s stronger consensus rating and higher possible upside, analysts clearly believe Brunswick is more favorable than Shimano.

Volatility and Risk

Shimano has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Brunswick has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Shimano and Brunswick’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	7.67%	2.83%	2.61%
Brunswick	-2.47%	13.30%	4.09%

Summary

Brunswick beats Shimano on 13 of the 18 factors compared between the two stocks.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

About Brunswick

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. It operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands. The Engine P&A segment offers engine parts and consumables, electrical products, boat parts and systems, and engine oils and lubricants through aftermarket retailers, dealers, distributors, and original equipment manufacturers for marine and non-marine markets under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands; and distributes marine parts and accessories. The Navico Group segment provides products and systems for the marine, recreational vehicle (RV), specialty vehicle, mobile, and industrial markets, as well as aftermarket channels; and marine electronics, sensors, control systems, instruments, power systems, and general accessories under the Ancor, Attwood, B&G, BEP, Blue Sea Systems, C-MAP, CZone, Lenco, Lowrance, Marinco, Mastervolt, MotorGuide, Progressive Industries, ProMariner, RELiON, Simrad, and Whale brand names. The Boat segment offers Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts, and Heyday wake boats; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; Thunder Jet heavy-gauge aluminum boats; Veer recreational and fishing boats; and the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.