Critical Comparison: Winnebago Industries (WGO) & The Competition

Winnebago Industries (NYSE:WGO) is one of 119 public companies in the “Automobiles” industry, but how does it weigh in compared to its competitors? We will compare Winnebago Industries to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares Winnebago Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winnebago Industries	1.36%	4.65%	2.74%
Winnebago Industries Competitors	-1,373.77%	-126.67%	-10.52%

Valuation & Earnings

This table compares Winnebago Industries and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Winnebago Industries	$2.84 billion	$25.70 million	23.85
Winnebago Industries Competitors	$53.31 billion	$1.13 billion	6.38

Winnebago Industries’ competitors have higher revenue and earnings than Winnebago Industries. Winnebago Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Winnebago Industries pays an annual dividend of $1.40 per share and has a dividend yield of 4.3%. Winnebago Industries pays out 102.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Automobiles” companies pay a dividend yield of 150.9% and pay out 7.2% of their earnings in the form of a dividend. Winnebago Industries has increased its dividend for 6 consecutive years. Winnebago Industries lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Winnebago Industries has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Winnebago Industries’ competitors have a beta of 0.96, meaning that their average share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Winnebago Industries and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winnebago Industries	1	8	3	0	2.17
Winnebago Industries Competitors	2037	5032	6304	186	2.34

Winnebago Industries currently has a consensus target price of $36.33, suggesting a potential upside of 12.00%. As a group, “Automobiles” companies have a potential upside of 79.37%. Given Winnebago Industries’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Winnebago Industries has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

39.1% of shares of all “Automobiles” companies are held by institutional investors. 4.9% of Winnebago Industries shares are held by company insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Winnebago Industries competitors beat Winnebago Industries on 10 of the 15 factors compared.

About Winnebago Industries

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates through three segments: Towable RV, Motorhome RV, and Marine. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names. The company also offers motorhome RV, a self-propelled mobile dwelling used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles under the Winnebago and Newmar brand names. In addition, it offers other specialty commercial vehicles for law enforcement command centers, mobile medical clinics, and mobile office spaces; commercial vehicles as bare shells to third-party up fitters, as well as manufactures and sells recreational boats under the Chris-Craft and Barletta brand names. Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles. It sells its products primarily through independent dealers in the United States, Canada, and internationally. Winnebago Industries, Inc. was incorporated in 1958 and is based in Eden Prairie, Minnesota.