Briggs & Stratton (NYSE: BGG) and Delphi Technologies (NYSE:DLPH) are both industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.
This table compares Briggs & Stratton and Delphi Technologies’ 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%|
This is a summary of recent recommendations and price targets for Briggs & Stratton and Delphi Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Briggs & Stratton||0||3||0||0||2.00|
Briggs & Stratton presently has a consensus price target of $26.00, indicating a potential upside of 23.99%. Delphi Technologies has a consensus price target of $61.43, indicating a potential upside of 22.59%. Given Briggs & Stratton’s higher possible upside, research analysts clearly believe Briggs & Stratton is more favorable than Delphi Technologies.
Briggs & Stratton pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Delphi Technologies pays an annual dividend of $0.17 per share and has a dividend yield of 0.3%. Briggs & Stratton pays out 42.7% of its earnings in the form of a dividend. Delphi Technologies pays out 3.3% 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. Briggs & Stratton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
84.7% of Briggs & Stratton shares are held by institutional investors. Comparatively, 86.5% of Delphi Technologies shares are held by institutional investors. 4.2% of Briggs & Stratton shares are held by insiders. Comparatively, 0.1% of Delphi Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Briggs & Stratton and Delphi Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Briggs & Stratton||$1.79 billion||0.50||$56.65 million||$1.31||16.01|
|Delphi Technologies||$4.85 billion||0.92||$285.00 million||$5.15||9.73|
Delphi Technologies has higher revenue and earnings than Briggs & Stratton. Delphi Technologies is trading at a lower price-to-earnings ratio than Briggs & Stratton, indicating that it is currently the more affordable of the two stocks.
Briggs & Stratton Company Profile
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.
Delphi Technologies Company Profile
Delphi Technologies PLC engages in the design, development, and manufacture of integrated powertrain technologies worldwide. The company operates through two segments, Powertrain Systems and Delphi Technologies Aftermarket. The Powertrain Systems segment provides fuel injection systems, as well as other powertrain products comprising valvetrain, fuel delivery modules, ignition coils, canisters, sensors, valves, and actuators; and electronic control modules with the corresponding software, algorithms, and calibration that provide centralized management of various powertrain components. It also provides power electronics solutions, including supervisory controllers and software, and DC/DC converters and inverters. This segment sells its portfolio of technologies and solutions for propulsion systems to original equipment manufacturers of light vehicles, including passenger cars, trucks, vans, and sport-utility vehicles; and commercial vehicles, such as light-duty, medium-duty, and heavy-duty trucks, as well as commercial vans, buses, and off-highway vehicles. The Delphi Technologies Aftermarket segment manufactures and sells aftermarket products, such as cover fuel injection, electronics and engine management, maintenance and test equipment, and vehicle diagnostics to independent aftermarket and original equipment service customers, and independent retailers and wholesale distributors. The company is based in London, the United Kingdom.
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