Critical Contrast: MarineMax (HZO) versus Its Competitors

MarineMax (NYSE:HZO) is one of 20 public companies in the “RETAIL – MISC/DIV” industry, but how does it weigh in compared to its competitors? We will compare MarineMax to similar businesses based on the strength of its analyst recommendations, valuation, dividends, profitability, institutional ownership, earnings and risk.

Profitability

This table compares MarineMax and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarineMax	2.35%	5.01%	1.89%
MarineMax Competitors	7.47%	8.13%	13.33%

Valuation and Earnings

This table compares MarineMax and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MarineMax	$2.43 billion	$38.07 million	10.36
MarineMax Competitors	$13.94 billion	$608.19 million	13.51

MarineMax’s competitors have higher revenue and earnings than MarineMax. MarineMax is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

92.9% of MarineMax shares are held by institutional investors. Comparatively, 78.9% of shares of all “RETAIL – MISC/DIV” companies are held by institutional investors. 4.0% of MarineMax shares are held by insiders. Comparatively, 6.6% of shares of all “RETAIL – MISC/DIV” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MarineMax and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarineMax	0	0	5	1	3.17
MarineMax Competitors	207	1721	2640	79	2.56

MarineMax currently has a consensus target price of $36.50, indicating a potential upside of 43.79%. As a group, “RETAIL – MISC/DIV” companies have a potential upside of 8.58%. Given MarineMax’s stronger consensus rating and higher probable upside, analysts plainly believe MarineMax is more favorable than its competitors.

Volatility and Risk

MarineMax has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, MarineMax’s competitors have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Summary

MarineMax competitors beat MarineMax on 7 of the 13 factors compared.

MarineMax Company Profile

MarineMax, Inc. operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates in two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, e-power yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage services; and boat or yacht brokerage services, as well as yacht charters and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates MarineMax vacations in Tortola and British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.