Briggs & Stratton (NYSE: BGG) and Delphi Technologies (NYSE:DLPH) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
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%|
Earnings & Valuation
This table compares Briggs & Stratton and Delphi Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Briggs & Stratton||$1.79 billion||0.54||$56.65 million||$0.54||41.65|
|Delphi Technologies||$4.85 billion||0.88||$285.00 million||N/A||N/A|
Delphi Technologies has higher revenue and earnings than Briggs & Stratton.
Briggs & Stratton pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. Delphi Technologies pays an annual dividend of $0.17 per share and has a dividend yield of 0.4%. Briggs & Stratton pays out 103.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.
This is a breakdown of recent ratings and recommmendations for Briggs & Stratton and Delphi Technologies, as provided by MarketBeat.
|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 15.61%. Delphi Technologies has a consensus price target of $63.17, indicating a potential upside of 30.73%. Given Delphi Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Delphi Technologies is more favorable than Briggs & Stratton.
Insider and Institutional Ownership
84.6% of Briggs & Stratton shares are owned by institutional investors. Comparatively, 86.5% of Delphi Technologies shares are owned by institutional investors. 4.2% of Briggs & Stratton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Delphi Technologies beats Briggs & Stratton on 8 of the 14 factors compared between the two stocks.
About Briggs & Stratton
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.
About Delphi Technologies
Delphi Technologies PLC is a develops, designs and manufactures powertrain technologies for original equipment manufacturers (OEMs). The Company’s segments is Products & Service Solutions (PSS). PSS segment sells aftermarket products to independent aftermarket and original equipment service customers. It supplies a full suite of aftermarket products, including engine control modules, pumps, injectors, fuel modules, exhaust gas recirculation valves, brakes, steering and suspension. The Company operates 20 manufacturing facilities and 12 technical centers in 24 countries.
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