Brunswick (NYSE: BC) and Capstone Turbine (NASDAQ:CPST) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
Brunswick has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, Capstone Turbine has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500.
This table compares Brunswick and Capstone Turbine’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Brunswick and Capstone Turbine’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brunswick||$4.51 billion||1.14||$146.40 million||$3.89||15.04|
|Capstone Turbine||$77.17 million||1.01||-$23.92 million||($0.78)||-1.85|
Brunswick has higher revenue and earnings than Capstone Turbine. Capstone Turbine is trading at a lower price-to-earnings ratio than Brunswick, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
93.8% of Brunswick shares are held by institutional investors. Comparatively, 11.3% of Capstone Turbine shares are held by institutional investors. 1.0% of Brunswick shares are held by company insiders. Comparatively, 1.8% of Capstone Turbine shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Brunswick pays an annual dividend of $0.76 per share and has a dividend yield of 1.3%. Capstone Turbine does not pay a dividend. Brunswick pays out 19.5% of its earnings in the form of a dividend. Brunswick has increased its dividend for 5 consecutive years.
This is a breakdown of current recommendations and price targets for Brunswick and Capstone Turbine, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Brunswick currently has a consensus target price of $69.07, indicating a potential upside of 18.04%. Capstone Turbine has a consensus target price of $2.00, indicating a potential upside of 38.89%. Given Capstone Turbine’s stronger consensus rating and higher probable upside, analysts clearly believe Capstone Turbine is more favorable than Brunswick.
Brunswick beats Capstone Turbine on 13 of the 17 factors compared between the two stocks.
Brunswick Corporation is a designer, manufacturer and marketer of recreation products. The Company operates through three segments: Marine Engine, Boat and Fitness. The Company’s product includes marine engines, boats, fitness equipment and active recreation products. The Company’s engine-related products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems; and marine parts and accessories. Its boat offerings include: fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; utility boats; deck boats; inflatable boats; and heavy-gauge aluminum boats. Its fitness products include cardiovascular and strength training equipment for both the commercial and consumer markets. It also sells products for active aging, rehabilitation, productive well-being, a complete line of billiards tables and other game room tables and accessories.
About Capstone Turbine
Capstone Turbine Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide. It offers microturbine units, components, and various accessories for applications, including cogeneration comprising combined heat and power (CHP) and integrated CHP, as well as combined cooling, heat, and power; and renewable energy, natural resources, and critical power supply. The company's microturbines are also used as battery charging generators for hybrid electric vehicle applications. It also provides various accessories, including rotary gas compressors with digital controls; heat recovery modules for CHP applications; dual mode controllers that allow automatic transition between grid connect and stand-alone modes; batteries with digital controls for stand-alone or dual-mode operations; batteries with digital controls; power servers for multipacked installations; protocol converters for Internet access; packaging options; and miscellaneous parts, such as frames, exhaust ducting, backflow dampers, and installation hardware. In addition, the company remanufactures microturbine engines; and provides after-market parts and services. It markets and sells its products primarily through distributors and original equipment manufacturers. Capstone Turbine Corporation was founded in 1988 and is headquartered in Van Nuys, California.
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