Critical Contrast: Seven and I (OTCMKTS:SVNDY) and MarineMax (NYSE:HZO)

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

Profitability

This table compares MarineMax and Seven and I’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarineMax	-1.15%	2.63%	1.00%
Seven and I	1.65%	6.49%	2.33%

Risk & Volatility

MarineMax has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Seven and I has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Earnings & Valuation

This table compares MarineMax and Seven and I”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarineMax	$2.43 billion	0.23	$38.07 million	($1.34)	-19.54
Seven and I	$78.57 billion	0.44	$1.14 billion	$0.51	26.27

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for MarineMax and Seven and I, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarineMax	0	0	5	0	3.00
Seven and I	0	1	0	0	2.00

MarineMax presently has a consensus price target of $33.25, indicating a potential upside of 27.01%. Given MarineMax’s stronger consensus rating and higher probable upside, equities research analysts clearly believe MarineMax is more favorable than Seven and I.

Institutional & Insider Ownership

92.9% of MarineMax shares are held by institutional investors. Comparatively, 0.0% of Seven and I shares are held by institutional investors. 4.0% of MarineMax shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Seven and I beats MarineMax on 8 of the 14 factors compared between the two stocks.

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.

About Seven and I

Seven & i Holdings Co., Ltd. operates convenience stores, superstores, department stores, supermarkets, and specialty stores. It operates through six segments: Domestic Convenience Store operations, Overseas Convenience Store Operations, Superstore Operations, Department and Specialty Store Operations, Financial Services, and Others. The company engages in the operation of convenience stores comprising directly managed corporate stores and franchised stores; retail business that provides daily life necessities, such as food and other daily necessities and dollar merchandise and services; banking, leasing, and credit card business; and real estate business. Seven & i Holdings Co., Ltd. was incorporated in 2005 and is headquartered in Tokyo, Japan.