OneWater Marine (NASDAQ:ONEW) versus Malibu Boats (NASDAQ:MBUU) Critical Review

OneWater Marine (NASDAQ:ONEW) and Malibu Boats (NASDAQ:MBUU) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for OneWater Marine and Malibu Boats, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneWater Marine	1	3	2	0	2.17
Malibu Boats	1	6	1	0	2.00

OneWater Marine currently has a consensus price target of $17.00, suggesting a potential upside of 44.07%. Malibu Boats has a consensus price target of $32.80, suggesting a potential upside of 10.44%. Given OneWater Marine’s stronger consensus rating and higher probable upside, equities analysts clearly believe OneWater Marine is more favorable than Malibu Boats.

Risk & Volatility

OneWater Marine has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Malibu Boats has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares OneWater Marine and Malibu Boats’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneWater Marine	-5.88%	4.32%	0.96%
Malibu Boats	1.76%	4.25%	2.95%

Valuation & Earnings

This table compares OneWater Marine and Malibu Boats”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneWater Marine	$1.87 billion	0.10	-$114.58 million	($6.74)	-1.75
Malibu Boats	$807.56 million	0.68	$14.88 million	$0.73	40.68

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

Institutional & Insider Ownership

94.3% of OneWater Marine shares are held by institutional investors. Comparatively, 91.4% of Malibu Boats shares are held by institutional investors. 19.5% of OneWater Marine shares are held by company insiders. Comparatively, 1.2% of Malibu Boats shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

OneWater Marine beats Malibu Boats on 8 of the 14 factors compared between the two stocks.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.

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.