Contrasting Mattel (NASDAQ:MAT) and Brunswick (NYSE:BC)

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

Dividends

Brunswick pays an annual dividend of $1.76 per share and has a dividend yield of 2.9%. Mattel pays an annual dividend of $0.60 per share and has a dividend yield of 3.6%. Brunswick pays out -134.4% of its earnings in the form of a dividend. Mattel pays out 44.1% 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.

Risk & Volatility

Brunswick has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Mattel has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brunswick	-1.53%	15.28%	4.60%
Mattel	7.79%	16.20%	5.37%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brunswick	$5.36 billion	0.74	-$137.30 million	($1.31)	-46.98
Mattel	$5.49 billion	0.87	$397.58 million	$1.36	12.27

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

Insider and Institutional Ownership

99.3% of Brunswick shares are owned by institutional investors. Comparatively, 97.2% of Mattel shares are owned by institutional investors. 1.0% of Brunswick shares are owned by insiders. Comparatively, 1.9% of Mattel shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Brunswick and Mattel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brunswick	1	6	6	1	2.50
Mattel	3	5	5	1	2.29

Brunswick currently has a consensus price target of $88.00, indicating a potential upside of 42.97%. Mattel has a consensus price target of $17.80, indicating a potential upside of 6.65%. Given Brunswick’s stronger consensus rating and higher possible upside, analysts plainly believe Brunswick is more favorable than Mattel.

Summary

Mattel beats Brunswick on 10 of the 17 factors compared between the two stocks.

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.

About Mattel

Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.