uploads/2016/07/pii-pe.png

How Does Polaris Industries Compare to Its Peers?

By

Updated

Polaris Industries and its peers

So far in this series, we’ve looked at Polaris Industries’ (PII) 2Q16 results. Now let’s compare Polaris Industries with its peers as of July 20, 2016. First, let’s compare their PE (price-to-earnings) ratios:

  • Polaris Industries (PII): 15.4x
  • Textron (TXT): 15.1x
  • Harley-Davidson (HOG): 13.3x

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

  • Polaris Industries (PII): 6.6x
  • Textron (TXT): 2.1x
  • Harley-Davidson (HOG): 4.8x

Thus, Polaris Industries is ahead of its peers based on PE and PBV ratios.

Article continues below advertisement

ETFs that invest in Polaris Industries

The VanEck Vectors Morningstar Wide Moat ETF (MOAT) invests 3.6% of its holdings in Polaris Industries. 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 Industries. The ETF tracks a market cap–weighted index of growth companies culled from the S&P 400.

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

Comparing Polaris Industries and its ETFs

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

  • The year-to-date price movements of Polaris Industries, MOAT, IVOG, and RYJ are 12.0%, 18.3%, 9.5%, and 7.2%, respectively.
  • The PE ratios of Polaris, MOAT, and IVOG are 15.4x, 18.4x, and 27.4x, respectively.
  • The PBV ratios of Polaris, MOAT, IVOG, and RYJ are 6.6x, 3.0x, 3.7x, and 2.1x, respectively.

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

Advertisement

More From Market Realist