Reviewing MASTERCRAFT BOAT (NASDAQ:MCFT) and Amer Sports (NYSE:AS)

MASTERCRAFT BOAT (NASDAQ:MCFT) and Amer Sports (NYSE:AS) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Volatility and Risk

MASTERCRAFT BOAT has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Amer Sports has a beta of 3.04, meaning that its stock price is 204% more volatile than the S&P 500.

Insider & Institutional Ownership

97.6% of MASTERCRAFT BOAT shares are held by institutional investors. Comparatively, 40.3% of Amer Sports shares are held by institutional investors. 2.5% of MASTERCRAFT BOAT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares MASTERCRAFT BOAT and Amer Sports”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MASTERCRAFT BOAT	$284.20 million	1.19	$7.04 million	$0.44	47.27
Amer Sports	$5.18 billion	3.27	$72.60 million	$0.41	74.56

Amer Sports has higher revenue and earnings than MASTERCRAFT BOAT. MASTERCRAFT BOAT is trading at a lower price-to-earnings ratio than Amer Sports, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for MASTERCRAFT BOAT and Amer Sports, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MASTERCRAFT BOAT	0	6	1	0	2.14
Amer Sports	0	4	14	1	2.84

MASTERCRAFT BOAT currently has a consensus price target of $22.20, suggesting a potential upside of 6.73%. Amer Sports has a consensus price target of $43.49, suggesting a potential upside of 42.25%. Given Amer Sports’ stronger consensus rating and higher probable upside, analysts clearly believe Amer Sports is more favorable than MASTERCRAFT BOAT.

Profitability

This table compares MASTERCRAFT BOAT and Amer Sports’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MASTERCRAFT BOAT	2.48%	7.01%	4.67%
Amer Sports	3.93%	6.87%	3.94%

Summary

Amer Sports beats MASTERCRAFT BOAT on 10 of the 15 factors compared between the two stocks.

About MASTERCRAFT BOAT

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.

About Amer Sports

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.