Head-To-Head Comparison: Dorel Industries (OTCMKTS:DIIBF) vs. Garmin (NYSE:GRMN)

Garmin (NYSE:GRMN) and Dorel Industries (OTCMKTS:DIIBF) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Garmin and Dorel Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garmin	25.58%	21.94%	17.81%
Dorel Industries	-12.73%	N/A	-11.89%

Dividends

Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.5%. Dorel Industries pays an annual dividend of $0.60 per share and has a dividend yield of 63.2%. Garmin pays out 40.3% of its earnings in the form of a dividend. Dorel Industries pays out -14.4% 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. Garmin has raised its dividend for 8 consecutive years. Dorel Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

81.6% of Garmin shares are owned by institutional investors. 14.8% of Garmin shares are owned by insiders. Comparatively, 19.3% of Dorel Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Garmin and Dorel Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garmin	$7.25 billion	7.27	$1.66 billion	$10.42	26.23
Dorel Industries	$1.19 billion	0.03	-$142.22 million	($4.16)	-0.23

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

Volatility and Risk

Garmin has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Garmin and Dorel Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	0	5	3	1	2.56
Dorel Industries	0	1	0	0	2.00

Garmin presently has a consensus price target of $315.29, suggesting a potential upside of 15.34%. Given Garmin’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Garmin is more favorable than Dorel Industries.

Summary

Garmin beats Dorel Industries on 14 of the 18 factors compared between the two stocks.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

About Dorel Industries

Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.