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How Does Polaris Industries Compare to Its Peers?

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Polaris Industries and its peers

We’ve looked at Polaris Industries’ (PII) 4Q15 results in this series. Now let’s compare Polaris with its peers as of January 27, 2016:

First, let’s compare PE (price-to-earnings) ratios:

  • Polaris Industries (PII): 9.9x
  • Textron (TXT): 13.3x
  • Harley-Davidson (HOG): 10.0x

Now let’s look at PBV (price-to-book value) ratios:

  • Polaris Industries (PII): 4.9x
  • Textron (TXT): 1.9x
  • Harley-Davidson (HOG): 3.0x

According to the above findings, the peers have outperformed Polaris Industries based on PE. However, Polaris Industries is ahead of its peers based on PBV.

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ETFs that invest in Polaris Industries

The VanEck Vectors Wide Moat Research ETF (MOAT) invests 3.6% of its holdings in Polaris. The ETF tracks an equal-weighted index of 20 companies that Morningstar determines to have the highest fair value among firms with a sustainable competitive advantage.

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) invests 0.84% of its holdings in Polaris. The ETF tracks a market-cap-weighted index of growth companies from the S&P 400.

The Guggenheim Raymond James SB-1 Equity ETF (RYJ) invests 0.73% of its holdings in Polaris. The ETF tracks an equal-weighted-index of US-listed stocks that analysts expect will achieve 15% total returns and outperform the S&P 500 over the next six to 12 months.

Comparing Polaris and its ETFs

Now let’s compare Polaris Industries with the ETFs that invest in it:

  • The year-to-date price movements of Polaris, MOAT, IVOG, and RYJ are -15.1%, -6.9%, -7.2%, and -9.8%, respectively.
  • The PE ratios of Polaris, MOAT, IVOG, and RYJ are 9.9x, 11.9x, 25.0x, and 38.9x, respectively.
  • The PBV ratios of Polaris, MOAT, IVOG, and RYJ are 4.9x, 3.1x, 3.4x, and 2.3x, respectively.

According to the above findings, ETFs have outperformed Polaris Industries based on price movement and PE. However, Polaris Industries has outperformed its ETFs based on PBV.

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