Tractor Supply (NASDAQ:TSCO) and MarineMax (NYSE:HZO) Head-To-Head Contrast

Tractor Supply (NASDAQ:TSCO) and MarineMax (NYSE:HZO) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Volatility & Risk

Tractor Supply has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, MarineMax has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Insider & Institutional Ownership

98.7% of Tractor Supply shares are held by institutional investors. Comparatively, 92.9% of MarineMax shares are held by institutional investors. 0.7% of Tractor Supply shares are held by company insiders. Comparatively, 4.0% of MarineMax shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Tractor Supply and MarineMax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tractor Supply	7.24%	47.56%	10.89%
MarineMax	2.35%	5.01%	1.89%

Earnings & Valuation

This table compares Tractor Supply and MarineMax”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tractor Supply	$14.88 billion	2.04	$1.10 billion	$2.01	28.46
MarineMax	$2.43 billion	0.24	$38.07 million	$2.45	11.29

Tractor Supply has higher revenue and earnings than MarineMax. MarineMax is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Tractor Supply and MarineMax, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tractor Supply	1	7	11	1	2.60
MarineMax	0	0	5	1	3.17

Tractor Supply currently has a consensus target price of $58.02, indicating a potential upside of 1.42%. MarineMax has a consensus target price of $36.50, indicating a potential upside of 31.96%. Given MarineMax’s stronger consensus rating and higher possible upside, analysts plainly believe MarineMax is more favorable than Tractor Supply.

Summary

Tractor Supply beats MarineMax on 9 of the 14 factors compared between the two stocks.

About Tractor Supply

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.

About MarineMax

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.