Comparing Pool (NASDAQ:POOL) and Malibu Boats (NASDAQ:MBUU)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Malibu Boats and Pool, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Malibu Boats	0	6	1	0	2.14
Pool	0	5	2	0	2.29

Malibu Boats presently has a consensus price target of $36.40, suggesting a potential upside of 9.64%. Pool has a consensus price target of $342.14, suggesting a potential upside of 10.12%. Given Pool’s stronger consensus rating and higher possible upside, analysts plainly believe Pool is more favorable than Malibu Boats.

Insider & Institutional Ownership

91.4% of Malibu Boats shares are held by institutional investors. Comparatively, 99.0% of Pool shares are held by institutional investors. 1.2% of Malibu Boats shares are held by insiders. Comparatively, 3.0% of Pool shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Malibu Boats and Pool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Malibu Boats	1.84%	4.93%	3.40%
Pool	7.79%	30.99%	11.51%

Volatility and Risk

Malibu Boats has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Pool has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares Malibu Boats and Pool”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Malibu Boats	$807.56 million	0.79	-$55.91 million	($0.41)	-80.98
Pool	$5.31 billion	2.18	$434.33 million	$10.84	28.66

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

Summary

Pool beats Malibu Boats on 12 of the 14 factors compared between the two stocks.

About Malibu Boats

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.