Critical Review: Vision Marine Technologies (VMAR) vs. The Competition

Vision Marine Technologies (NASDAQ:VMAR) is one of 34 public companies in the “LEISURE&REC PRD” industry, but how does it weigh in compared to its peers? We will compare Vision Marine Technologies to similar companies based on the strength of its valuation, earnings, profitability, risk, analyst recommendations, institutional ownership and dividends.

Insider & Institutional Ownership

53.8% of Vision Marine Technologies shares are held by institutional investors. Comparatively, 54.2% of shares of all “LEISURE&REC PRD” companies are held by institutional investors. 40.4% of Vision Marine Technologies shares are held by insiders. Comparatively, 22.5% of shares of all “LEISURE&REC PRD” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Vision Marine Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vision Marine Technologies	-616.85%	-122.86%	-68.71%
Vision Marine Technologies Competitors	-41.53%	-78.87%	-10.62%

Analyst Ratings

This is a summary of recent ratings and price targets for Vision Marine Technologies and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vision Marine Technologies	0	0	1	0	3.00
Vision Marine Technologies Competitors	120	1000	1904	58	2.62

Vision Marine Technologies presently has a consensus target price of $300.00, indicating a potential upside of 4,137.29%. As a group, “LEISURE&REC PRD” companies have a potential upside of 11.33%. Given Vision Marine Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Vision Marine Technologies is more favorable than its peers.

Volatility & Risk

Vision Marine Technologies has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Vision Marine Technologies’ peers have a beta of 1.71, suggesting that their average share price is 71% more volatile than the S&P 500.

Valuation and Earnings

This table compares Vision Marine Technologies and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vision Marine Technologies	$2.79 million	-$10.33 million	-0.01
Vision Marine Technologies Competitors	$1.54 billion	-$20.69 million	-36.66

Vision Marine Technologies’ peers have higher revenue, but lower earnings than Vision Marine Technologies. Vision Marine Technologies is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Vision Marine Technologies peers beat Vision Marine Technologies on 7 of the 13 factors compared.

Vision Marine Technologies Company Profile

Vision Marine Technologies Inc. designs, develops, manufactures, sells, and rents electric boats in Canada, the United States, and internationally. It offers e-motion electric powertrain technology; e-motion electric outboard powertrain system; electric boats; maintenance, repair, and customer support services; as well as manufactures customized boats. The company also provides its products through website and distributors. It serves original equipment manufacturers, retail customer, boat clubs, and boat rental operations. The company was formerly known as Riopel Marine Inc. and changed its name to Vision Marine Technologies Inc. in April 2020. Vision Marine Technologies Inc. was founded in 1995 and is headquartered in Boisbriand, Canada.