© Reuters. Polaris vs. BRP: Which Recreational Vehicle Stock is a Better Buy?
Recreational Vehicle (RV) companies are focusing on significant improvements and advancements to attract new customers. And as demand for RVs rises, we think prominent players in this space, Polaris (NYSE:) and BRP (NASDAQ:), should benefit. But which of these stocks is a better buy now? Read more to find out.Polaris Inc. (PII) in Medina, Minn., designs, engineers, manufactures and markets power sports vehicles worldwide. It operates in five segments: ORV/Snowmobiles; Motorcycles; Global Adjacent Markets; Aftermarket; and Boats. In comparison , BRP Inc . (DOOO) designs, develops, manufactures, and markets Powersports vehicles and marine products worldwide. BRP is based in Valcourt, Canada.
Outdoor activities are gaining traction, thanks to significant progress in the COVID-19 vaccination drive and easing of travel restrictions. Though the rapid spread of the highly contagious Delta variant is a cause for concern, the recreational vehicles (RV) market is expected to grow at a sustainable rate over the long term. In a recent survey, 99% of respondents said they feel safe traveling in an RV. The industry is expected to be valued at $48 billion by 2026, registering a 7% CAGR over the next five years. Both PII and DOOO are expected to benefit from the industry tailwinds.
DOOO has gained 18.9% over the past six months, while PII has returned 10.5% over the period. However, PII’s 41.7% gains year-to-date compare with DOOO’s 35.7% returns. In terms of their past-year performance, DOOO is the clear winner with 90.7% gains versus PII’s 26%.
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