Brunswick Corporation (NYSE: BC) and MarineMax (NYSE:HZO) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitabiliy, risk, institutional ownership and earnings.

Risk and Volatility

Brunswick Corporation has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, MarineMax has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Brunswick Corporation and MarineMax, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick Corporation 1 3 8 0 2.58
MarineMax 0 1 4 0 2.80

Brunswick Corporation currently has a consensus target price of $66.56, suggesting a potential upside of 6.23%. MarineMax has a consensus target price of $24.40, suggesting a potential upside of 24.81%. Given MarineMax’s stronger consensus rating and higher probable upside, analysts plainly believe MarineMax is more favorable than Brunswick Corporation.

Earnings and Valuation

This table compares Brunswick Corporation and MarineMax’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brunswick Corporation $4.58 billion 1.22 $589.80 million $3.00 20.88
MarineMax $1.04 billion 0.49 $52.85 million $1.01 19.36

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

Dividends

Brunswick Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 1.1%. MarineMax does not pay a dividend. Brunswick Corporation pays out 22.0% of its earnings in the form of a dividend. Brunswick Corporation has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

99.0% of Brunswick Corporation shares are owned by institutional investors. Comparatively, 90.9% of MarineMax shares are owned by institutional investors. 1.0% of Brunswick Corporation shares are owned by insiders. Comparatively, 5.0% of MarineMax shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Brunswick Corporation and MarineMax’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brunswick Corporation 6.03% 23.15% 10.18%
MarineMax 2.40% 7.67% 4.08%

Summary

Brunswick Corporation beats MarineMax on 13 of the 17 factors compared between the two stocks.

About Brunswick Corporation

Brunswick Corporation is a designer, manufacturer and marketer of recreation products. The Company operates through three segments: Marine Engine, Boat and Fitness. The Company’s product includes marine engines, boats, fitness equipment and active recreation products. The Company’s engine-related products include outboard, sterndrive and inboard engines; trolling motors; propellers; engine control systems; and marine parts and accessories. Its boat offerings include: fiberglass pleasure boats; yachts and sport yachts; sport cruisers and sport boats; offshore fishing boats; aluminum and fiberglass fishing boats; pontoon boats; utility boats; deck boats; inflatable boats; and heavy-gauge aluminum boats. Its fitness products include cardiovascular and strength training equipment for both the commercial and consumer markets. It also sells products for active aging, rehabilitation, productive well-being, a complete line of billiards tables and other game room tables and accessories.

About MarineMax

MarineMax, Inc. is a recreational boat and yacht dealer in the United States. Through 56 retail locations in Alabama, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, and Texas, the Company sold new and used recreational boats, including pleasure and fishing boats, as of September 30, 2016. The Company also sells related marine products, including engines, trailers, parts and accessories. In addition, it provides repair, maintenance, and slip and storage services; arranges related boat financing, insurance, and extended service contracts; offers boat and yacht brokerage sales, and operates a yacht charter business. The Company primarily sells recreational boats, including pleasure boats and fishing boats. The Company offers marine engines and equipment and sells marine engines and propellers primarily to retail customers as replacements for their existing engines or propellers.

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