Manly Stocks For Real Dudes, Like Ron Swanson
Nov 9th 2013 1:00PM
Updated Nov 9th 2013 1:02PM
If you're looking for the quintessential model of the modern manly man, you'll find it in NBC's Parks and Recreation's Nick Offerman.
In and out of character the mustachioed actor (he plays Ron Swanson, director of the fictional Pawnee Parks and Recreation Department) embraces penultimate "guy stuff" -- steak, scotch (and beer), hunting and fishing, and wooing women.
Achieving effortless ruggedness is the topic of Offerman's new book, "Paddle Your Own Canoe: One Man's Fundamentals for Delicious Living," which is filled with life lessons on everything from grilling red meat to getting around without your sissy GPS device.
Just for fun, let's say Ron Swanson were to turn his talents and attention to stocks. Which companies would be worthy candidates for a manly man's portfolio? Let's take a look at some contenders.
1. Boston Beer (NYSE: SAM): The all-American brew
Because Offerman, the actor, grew his signature mustache to be able to buy beer, and Ron Swanson, the character, is a self-described patriot , American craft brewer Boston Beer makes the perfect pick for the discerning manly man's portfolio.
Boston Beer virtually pioneered the craft beer movement in the U.S. Now it's a hot commodity, with craft-beer sales in the U.S. doubling in the last five years from $5.7 billion to $12 billion last year.
According to the Huffington Post, craft-beer sales (by value) could outstrip those of big cap rivals Anheuser-Busch InBev and Molson Coors by 2020, and in volume by 2033. However, the competitive landscape has gotten more crowded with Molson Coors and Anheuser Busch InBev always sniffing around for small brewers to fold into their growing craft beer portfolios.
Boston Beer has had one of the more amazing runs in the last ten years, largely unheralded, with share price up 1,355% over the last decade and doubling in the last year alone. Like similar companies with huge runs, the trailing earnings multiple is extended at 51.58 and the short interest is high at 15.8%, but this is decreasing.
2. Diageo (NYSE: DEO): Impress your lady friend with your impeccable good taste
Diageo is the world's largest premium spirits company -- with the emphasis on "premium." In fact, Nick Offerman/Ron Swanson's favorite whiskey -- Lagavulin, which he refers to as "mother's milk or "nectar of the gods" -- is in the company's Classic Malts collection.
The company has 13 strategic premium brands, which together bring in 57% of the company's volume and net sales. Six of these brands are No. 1 in their respective categories globally: Johnnie Walker scotch, Jose Cuervo tequila, Crown Royal Canadian whiskey, Smirnoff premium vodka, Guinness stout, and Baileys Irish Cream liqueur.
Diageo has been a reliable performer, with a chaser of a 2.90% yield. The stock has more than doubled since 2009.
3. Cabelas (NYSE: CAB) : Real men hunt, fish, and oil their guns
Hunting, fishing, and weapons are important parts of the Ron Swanson Pyramid of Greatness (check it out below). Swanson would certainly find a kindred spirit in outdoor outfitter Cabela's CEO Thomas Milner, who invited Wall Street analysts to go hunting at the last Analyst Day.
Source: NBC Universal
When this destination retailer opens a new store, the event draws thousands. The company also does a brisk catalog and Internet business as well, and its private brands have significantly higher margins.
After a recent sell-off the stock is trading at a trailing earnings multiple of 20.04. Excluding gun sales, Cabela's would have reported higher same store sales of 5.3% on its third quarter earnings, which boasted higher gross margin, EPS growth of 16.7%, and revenues pushing up 14.8%.
4. General Motors (NYSE: GM): Drive American and drive big
Patriot that he is, Swanson wouldn't consider driving anything but an American gas guzzler like his burgundy Buick Park Avenue (of indeterminate age).
GM is the maker of the Buick and has been on the mend since the height of the recession. Swanson would likely applaud GM's latest initiative to make their cars less dependent on foreign oil and able to run on America's bounty of natural gas. Maybe he might swap out his aging old Park Avenue for the 2015 Impala, their first full size sedan capable of running on both compressed natural gas and regular gas.
Buick is performing well, with sales up 31% in October, but it was strength in trucks that pushed GM to outperform Ford.The company has been hinting it would consider more share buybacks to expedite the U.S. government's exit as a shareholder-- definitely a move Swanson would approve. This would also pave the way for a return of the dividend.
GM has a forward earnings multiple of 8.25 and a PEG of only 0.60. The company is on track in its turnaround with 14 consecutive profitable quarters, and has earned almost $8 billion in 2012.
5. Buffalo Wild Wings (NASDAQ: BWLD): Wings. Beer. Sports. What's not to love?
While fictional Pawnee, Indiana doesn't have a Buffalo Wild Wings, the company has 925 locations across the U.S. in towns very much like it. Its concept of full bar offerings and wall-to-wall TVs for sports has been a winner. And while manly, Ron Swanson could bring either ex-wife named Tammy there with no misgivings.
Buffalo Wild Wings has been expanding its menu to burgers and brats, part of the All-American Brat Burger (as Swanson would say, "You had me at meat tornado!") to offset the volatility of chicken wing prices.
Buffalo Wild Wings beat expectations in the third quarter on both top and bottom lines with a stunning 27.9% increase in revenue, and also guided net earnings growth to come in at 20%, higher than the previously-guided 17% in July.
Buffalo Wild Wings trades with a high trailing earnings multiple 39.96. But you get what you pay for in Buffalo Wild Wings with a fast growing chain and international expansion. Mexico and Middle East openings are expected by year end, and the company recently entered the Philippines. Buffalo Wild Wings has increased its international footprint by 23% in the last year.
More than one third of locations are franchised, a business model that brings in additional revenue streams to Buffalo Wild Wings. Royalty and franchise fee income grew to $20.1 million in the third quarter alone.
A manly portfolio, but women will like it, too!
Taken altogether, this portfolio is made up of solid and growing companies. With the exception of Diageo, all of them are American. These lean, mean, muscular companies do their jobs very well. And isn't that what being manly should be about?
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The article Manly Stocks For Real Dudes, Like Ron Swanson originally appeared on Fool.com.AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Boston Beer, Buffalo Wild Wings, Diageo plc (ADR), and General Motors. The Motley Fool owns shares of Boston Beer and Buffalo Wild Wings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.