MarineMax (NYSE: HZO) and American Outdoor Brands Corporation (NASDAQ:AOBC) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for MarineMax and American Outdoor Brands Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MarineMax 0 2 3 1 2.83
American Outdoor Brands Corporation 0 5 5 0 2.50

MarineMax currently has a consensus price target of $21.67, indicating a potential upside of 4.92%. American Outdoor Brands Corporation has a consensus price target of $19.35, indicating a potential upside of 41.34%. Given American Outdoor Brands Corporation’s higher possible upside, analysts plainly believe American Outdoor Brands Corporation is more favorable than MarineMax.

Risk and Volatility

MarineMax has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, American Outdoor Brands Corporation has a beta of -0.14, suggesting that its share price is 114% less volatile than the S&P 500.

Earnings and Valuation

This table compares MarineMax and American Outdoor Brands Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
MarineMax $1.05 billion 0.47 $23.54 million $0.96 21.51
American Outdoor Brands Corporation $903.19 million 0.82 $127.85 million $1.60 8.56

American Outdoor Brands Corporation has higher revenue, but lower earnings than MarineMax. American Outdoor Brands Corporation is trading at a lower price-to-earnings ratio than MarineMax, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MarineMax and American Outdoor Brands Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MarineMax 2.24% 7.82% 3.89%
American Outdoor Brands Corporation 10.96% 27.91% 14.47%

Institutional and Insider Ownership

90.6% of MarineMax shares are held by institutional investors. Comparatively, 70.7% of American Outdoor Brands Corporation shares are held by institutional investors. 5.0% of MarineMax shares are held by company insiders. Comparatively, 2.3% of American Outdoor Brands Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

American Outdoor Brands Corporation beats MarineMax on 8 of the 15 factors compared between the two stocks.

About MarineMax

MarineMax, Inc. is a recreational boat and yacht dealer in the United States. Through 56 retail locations in Alabama, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, and Texas, the Company sold new and used recreational boats, including pleasure and fishing boats, as of September 30, 2016. The Company also sells related marine products, including engines, trailers, parts and accessories. In addition, it provides repair, maintenance, and slip and storage services; arranges related boat financing, insurance, and extended service contracts; offers boat and yacht brokerage sales, and operates a yacht charter business. The Company primarily sells recreational boats, including pleasure boats and fishing boats. The Company offers marine engines and equipment and sells marine engines and propellers primarily to retail customers as replacements for their existing engines or propellers.

About American Outdoor Brands Corporation

American Outdoor Brands Corporation, formerly Smith & Wesson Holding Corporation, is a manufacturer of firearms and a provider of accessory products for the shooting, hunting and outdoor enthusiast. The Company operates through two segments. The Firearms segment manufactures handgun and long gun products sold under the Smith & Wesson, M&P and Thompson/Center Arms brands, as well as providing forging, machining and precision plastic injection molding services. The Outdoor Products & Accessories segment provides shooting, hunting and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, vault accessories, knives, laser sighting systems and tactical lighting products. Brands in Outdoor Products & Accessories include Crimson Trace, Caldwell Shooting Supplies, Wheeler Engineering, Lockdown Vault Accessories, BOG POD and Golden Rod Moisture Control, as well as knives and specialty tools under Schrade, Old Timer, Uncle Henry and Imperial.

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