Malibu Boats (NASDAQ: MBUU) and MCBC Holdings (NASDAQ:MCFT) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

Malibu Boats has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, MCBC Holdings has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Insider and Institutional Ownership

90.1% of Malibu Boats shares are owned by institutional investors. Comparatively, 93.9% of MCBC Holdings shares are owned by institutional investors. 3.5% of Malibu Boats shares are owned by insiders. Comparatively, 2.6% of MCBC Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Malibu Boats and MCBC Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Malibu Boats 0 2 5 0 2.71
MCBC Holdings 0 0 3 0 3.00

Malibu Boats currently has a consensus price target of $31.50, suggesting a potential upside of 13.31%. MCBC Holdings has a consensus price target of $25.00, suggesting a potential upside of 16.33%. Given MCBC Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe MCBC Holdings is more favorable than Malibu Boats.

Profitability

This table compares Malibu Boats and MCBC Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Malibu Boats 9.42% 78.94% 14.54%
MCBC Holdings 8.56% 443.78% 23.43%

Earnings & Valuation

This table compares Malibu Boats and MCBC Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Malibu Boats $281.94 million 2.01 $28.35 million $1.68 16.55
MCBC Holdings $228.63 million 1.75 $19.57 million $1.06 20.27

Malibu Boats has higher revenue and earnings than MCBC Holdings. Malibu Boats is trading at a lower price-to-earnings ratio than MCBC Holdings, indicating that it is currently the more affordable of the two stocks.

About Malibu Boats

Malibu Boats, Inc. is a designer, manufacturer and marketer of performance sport boats. The Company’s segments include the U.S. and Australia. Each segment is engaged in the manufacturing, distribution, marketing and sale of performance sport boats. Its U.S. segment serves markets in North America, South America, Europe and Asia. Its Australia segment serves the Australian and New Zealand markets. The Company’s boats are used for water sports, including water skiing, wakeboarding and wake surfing, as well as general recreational boating. The Company sells its boats under Malibu and Axis Wake Research (Axis) brand names. The Company’s boats are constructed of fiberglass, equipped with inboard propulsion systems and available in a range of sizes and hull designs. The Company also offers various accessories and aftermarket parts. The Company’s boat models include Malibu M Series, Malibu Wakesetter, Malibu Response and Axis.

About MCBC Holdings

MCBC Holdings, Inc. (MCBC) is a holding company. The Company is a designer and manufacturer of inboard tournament ski boats and V-drive runabouts under the MasterCraft brand. The Company operates through two segments: MasterCraft and Hydra-Sports. The MasterCraft product brand consists of recreational performance boats primarily used for water skiing, wakeboarding and wake surfing, and general recreational boating. The Company distributes the MasterCraft product brand through its dealer network. The Company manufactures a range of Hydra-Sports recreational fishing boats. It also leases a parts warehouse in the United Kingdom to expedite service, primarily to dealers and customers in the European Union. Its MasterCraft-branded portfolio includes Star Series, XSeries and NXT boats. In addition, MCBC offers various accessories, including trailers and aftermarket parts. The Company operates primarily through its subsidiaries, MasterCraft Boat Company, LLC and MCBC Hydra Boats, LLC.

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