Malibu Boats (NASDAQ: MBUU) and Marine Products Corporation (NYSE:MPX) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitabiliy and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Malibu Boats and Marine Products Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Malibu Boats 0 2 3 0 2.60
Marine Products Corporation 0 1 0 0 2.00

Malibu Boats presently has a consensus target price of $24.50, indicating a potential downside of 9.73%. Marine Products Corporation has a consensus target price of $11.50, indicating a potential downside of 25.37%. Given Malibu Boats’ stronger consensus rating and higher possible upside, analysts plainly believe Malibu Boats is more favorable than Marine Products Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Malibu Boats 11.47% 99.24% 15.74%
Marine Products Corporation 7.27% 22.18% 16.83%

Volatility and Risk

Malibu Boats has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Marine Products Corporation has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Valuation and Earnings

This table compares Malibu Boats and Marine Products Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Malibu Boats $273.51 million 1.78 $49.49 million $1.25 21.71
Marine Products Corporation $248.71 million 2.17 $26.26 million $0.49 31.45

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

Dividends

Marine Products Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. Malibu Boats does not pay a dividend. Marine Products Corporation pays out 57.1% of its earnings in the form of a dividend. Marine Products Corporation has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

99.1% of Malibu Boats shares are held by institutional investors. Comparatively, 15.3% of Marine Products Corporation shares are held by institutional investors. 3.7% of Malibu Boats shares are held by insiders. Comparatively, 77.9% of Marine Products Corporation 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.

Summary

Malibu Boats beats Marine Products Corporation on 11 of the 17 factors compared between the two stocks.

Malibu Boats Company Profile

Malibu Boats, Inc. is a designer, manufacturer and marketer of performance sport boats. The Company’s segments include the U.S. and Australia. Each segment is engaged in the manufacturing, distribution, marketing and sale of performance sport boats. Its U.S. segment serves markets in North America, South America, Europe and Asia. Its Australia segment serves the Australian and New Zealand markets. The Company’s boats are used for water sports, including water skiing, wakeboarding and wake surfing, as well as general recreational boating. The Company sells its boats under Malibu and Axis Wake Research (Axis) brand names. The Company’s boats are constructed of fiberglass, equipped with inboard propulsion systems and available in a range of sizes and hull designs. The Company also offers various accessories and aftermarket parts. The Company’s boat models include Malibu M Series, Malibu Wakesetter, Malibu Response and Axis.

Marine Products Corporation Company Profile

Marine Products Corporation manufactures fiberglass motorized boats distributed and marketed through its independent dealer network. The Company designs, manufactures and sells recreational fiberglass powerboats in the sportboat, deckboat, cruiser, jet boat and sport fishing markets. The Company’s product offerings include Chaparral sterndrive, outboard and jet pleasure boats, and Robalo outboard sport fishing boats. The Company’s product line includes Chaparral-Vortex Jet Boat; Chaparral-H2O Sport Series; Chaparral-SunCoast Outboard Deck Boat; Chaparral-SSi Wide Tech; Chaparral-SSX Sport Boat; Chaparral-Sunesta Sport Deck; Chaparral-Signature Cruiser; Robalo-Center Console; Robalo-Cayman Bay Boat, and Robalo-Dual Console Robalo-Walkaround. Its manufacturing facilities are located in Nashville and Valdosta in Georgia. The Chaparral – Vortex Jet Boats are fiberglass sterndrive pleasure boats marketed as jet-powered boats with traditional bowrider styling.

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