Harley-Davidson, Inc. (HOG) vs Polaris Inc. (PII)

Harley-Davidson, Inc. and Polaris Inc. are both Recreational Vehicles companies. Polaris Inc. is the larger, with a market value of $3.0B against $2.7B — 1.1× the size. Polaris Inc. has negative trailing earnings, so its P/E is not meaningful; Harley-Davidson, Inc. trades at 15.1×. Polaris Inc. grew revenue faster over the last twelve months: 8.43% against −5.25%. Harley-Davidson, Inc. has the higher net margin (4.78% vs −3.50%) and the higher return on invested capital (3.85% vs −4.84%). Both pay a dividend; Polaris Inc. yields more (2.92% vs 2.13%). Across the 21 metrics below, Harley-Davidson, Inc. leads on 13 and Polaris Inc. on 8.

Valuation

Metric HOG PII Recreational Vehicles median
P/E 15.15 n/m 17.55
P/S 0.63 0.41 0.53
P/B 0.86 3.63 0.91
Price to free cash flow n/m 45.58 10.77
EV/EBITDA 7.25 59.94 9.09
EV/Sales 0.71 0.63 0.63
Earnings yield 6.60% (8.67%) 0.15%
Free cash flow yield (4.97%) 2.19% 6.30%

Profitability

Metric HOG PII Recreational Vehicles median
Gross margin 26.89% 21.19% 22.03%
Operating margin 5.03% (2.55%) 0.17%
Net margin 4.78% (3.50%) (0.15%)
Free cash flow margin (3.14%) 0.90% 4.02%
Return on equity 6.31% (25.65%) 0.16%
Return on assets 2.10% (4.92%) 0.10%
Return on invested capital 3.85% (4.84%) 0.16%

Growth

Metric HOG PII Recreational Vehicles median
Revenue growth (TTM) (5.25%) 8.43% 4.05%
EPS growth (last fiscal year) (19.19%) (519.49%) —
Revenue growth, 5-year CAGR 1.99% 2.63% 4.29%
Net income growth, 5-year CAGR 204.31% 0.00% 0.00%

Health

Metric HOG PII Recreational Vehicles median
Debt to equity 0.72 2.28 0.48
Current ratio 1.90 1.20 1.81
Net debt to EBITDA (0.20) (21.97) 0.53

Dividend

Metric HOG PII Recreational Vehicles median
Dividend yield 2.13% 2.92% 1.87%
Payout ratio 0.12 0.24 0.05

Size

Metric HOG PII Recreational Vehicles median
Market cap 2.66b 2.98b 628.11m

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