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How Does Polaris Industries Compare to Its Peers?

Gabriel Kane

How Did Polaris Industries Perform in 1Q16?

(Continued from Prior Part)

Polaris Industries and its peers

So far in this series, we’ve looked at Polaris Industries’ (PII) 1Q16 earnings. Now let’s compare the company with its peers. We’ll start with PE (price-to-earnings) ratios, as of April 22, 2016:

  • Polaris Industries (PII): 14.9x
  • Textron (TXT): 15.3x
  • Harley-Davidson (HOG): 13.1x

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

  • Polaris Industries (PII): 7.0x
  • Textron (TXT): 2.2x
  • Harley-Davidson (HOG): 4.7x

Thus, Polaris Industries is ahead of its peers based on PBV multiple.

ETFs that invest in Polaris Industries

The Market 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 PII. 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 PII. 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 YTD (year-to-date) price movements of PII, MOAT, IVOG, and RYJ are 17.7%, 12.1%, 3.2%, and 3.1%, respectively.
  • The PE ratios of PII, MOAT, IVOG, and RYJ are 14.9x, 11.9x, 25.0x, and 38.9x, respectively.
  • The PBV multiples of PII, MOAT, IVOG, and RYJ are 7.0x, 3.1x, 3.4x, and 2.3x, respectively.

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

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