Critical Analysis: Massimo Group (NASDAQ:MAMO) versus BRP (NASDAQ:DOOO)

BRP (NASDAQ:DOOO) and Massimo Group (NASDAQ:MAMO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for BRP and Massimo Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRP	0	3	6	1	2.80
Massimo Group	1	0	0	0	1.00

BRP currently has a consensus target price of $131.00, indicating a potential upside of 110.78%. Given BRP’s stronger consensus rating and higher possible upside, equities analysts plainly believe BRP is more favorable than Massimo Group.

Risk and Volatility

BRP has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Massimo Group has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Profitability

This table compares BRP and Massimo Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRP	0.45%	67.30%	4.72%
Massimo Group	6.04%	17.60%	8.59%

Earnings and Valuation

This table compares BRP and Massimo Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRP	$8.03 billion	0.57	-$154.60 million	$0.37	167.97
Massimo Group	$71.83 million	0.56	$1.51 million	$0.10	9.60

Massimo Group has lower revenue, but higher earnings than BRP. Massimo Group is trading at a lower price-to-earnings ratio than BRP, indicating that it is currently the more affordable of the two stocks.

Summary

BRP beats Massimo Group on 10 of the 13 factors compared between the two stocks.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.

About Massimo Group

Massimo Group, through its subsidiaries, engages in the manufacturing and sale of utility terrain vehicles, all-terrain vehicles, and pontoon and tritoon boats. The company also offers motorcycles, scooters, golf carts, and go karts and balance bikes, as well as snow equipment. In addition, it provides accessories, including EV chargers, electric coolers, power stations, and portable solar panels. The company sells its products through a network of dealerships, distributors, and chain stores, as well as the e-commerce marketplace. Massimo Group was founded in 2009 and is based in Garland, Texas.