Graham-Style DOV vs. DVD

[buffett]

In case my Buckeye comparison is uninteresting or is a no-brainer (I don't know, I've never researched either), here is one other pair that should be OK:

Dover (DOV), large conglomerate
Dover Motorsports (DVD), small racetrack company

[gmandan]

I'm actually very interested to see this kind of analysis. Too bad there are no real replies. I don't know enough to say anything interesting and I assume that's the case for many people on these boards, too many newbies like me.

[Ed Miller]

[ QUOTE ]
I'm actually very interested to see this kind of analysis. Too bad there are no real replies. I don't know enough to say anything interesting and I assume that's the case for many people on these boards, too many newbies like me.

[/ QUOTE ]

I'm going to take a shot at these when I get some time.

[Sniper]

[ QUOTE ]
I'm actually very interested to see this kind of analysis. Too bad there are no real replies. I don't know enough to say anything interesting and I assume that's the case for many people on these boards, too many newbies like me.

[/ QUOTE ]

This is actually a very good excercise, and I will likely take a look at them over the weekend.

[Ed Miller]

DVD - Dover Motorsports

I'll start with this one because it's easier.

Price: $6.14
EPS: 0.19 TTM, -0.032 5 yr. avg.
P/E: 32.3
ROE: 6.2%
Net Margin: 8.3%

Dover Motorsports promotes auto racing events. For such a high earnings multiplier, I'd want to see a good business, and I don't. Its sales haven't grown at all in the last few years. I also looked at the last 10-K, and management has reserved 10% of outstanding shares to grant itself if the company ever does grow. So any future earnings are subject to significant dilution. Wouldn't touch it.

DOV - Dover

Price: $40.82
EPS: 2.41 TTM, 1.30 5 yr. avg.
ROA: 7.2%
ROE: 15.0%
Net Margin: 8.1%

Dover is a manufacturing conglomerate that grows by acquisition. From its 10-K, it looks for stronger-than-average companies with high value-add that can either stand alone, requiring little to no management, or that can be added-on to existing operations.

Its annualized earnings growth rate is 8.5% over 10 years, and it returns a dividend yield of 1.6%.

Recently, it's taken on significantly more long-term debt as a proportion of assets: 1.34B debt to 2.22B book.

Dover's future growth rests upon its ability to identify and buy good companies, which adds an inherent risk. Overall, Dover appears to be a solid operation, but doesn't appear to be a value at this price.

I wouldn't buy either company, but I'd strongly prefer DOV to DVD.

[J_V]

I'm giving you my vote for Sklansky's top ten smartest and expect you to bump diablo for number 10 this year.