Head to Head Analysis: Calloway’s Nursery (OTCMKTS:CLWY) versus MarineMax (NYSE:HZO)

Calloway’s Nursery (OTCMKTS:CLWY) and MarineMax (NYSE:HZO) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Insider and Institutional Ownership

92.9% of MarineMax shares are owned by institutional investors. 36.4% of Calloway’s Nursery shares are owned by company insiders. Comparatively, 3.2% of MarineMax shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Calloway’s Nursery has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, MarineMax has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Profitability

This table compares Calloway’s Nursery and MarineMax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Calloway’s Nursery	N/A	N/A	N/A
MarineMax	-2.46%	1.13%	0.43%

Earnings & Valuation

This table compares Calloway’s Nursery and MarineMax”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calloway’s Nursery	N/A	N/A	N/A	$0.21	9.76
MarineMax	$2.31 billion	0.28	-$31.63 million	($2.68)	-11.09

Calloway’s Nursery has higher earnings, but lower revenue than MarineMax. MarineMax is trading at a lower price-to-earnings ratio than Calloway’s Nursery, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Calloway’s Nursery and MarineMax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calloway’s Nursery	0	0	0	0	0.00
MarineMax	1	1	5	0	2.57

MarineMax has a consensus target price of $30.80, suggesting a potential upside of 3.67%. Given MarineMax’s stronger consensus rating and higher probable upside, analysts plainly believe MarineMax is more favorable than Calloway’s Nursery.

Summary

MarineMax beats Calloway’s Nursery on 8 of the 12 factors compared between the two stocks.

About Calloway’s Nursery

Calloway's Nursery, Inc. operates garden centers in the United States. The company offers birding, fertilizers, garden tools,insect and pest control; mosquito control solutions, pottery, soils and mulches; weed control and fungicide to gardeners. It also provides cornelius home decor and lawn décor products. In addition, the company provides landscape design services. The company operates 24 stores under the Calloway's Nursery name in Texas. Calloway's Nursery, Inc. was founded in 1986 and is based in Fort Worth, Texas.

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.