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

Institutional and Insider Ownership

90.9% of MarineMax shares are owned by institutional investors. Comparatively, 99.0% of Brunswick Corporation shares are owned by institutional investors. 5.0% of MarineMax shares are owned by company insiders. Comparatively, 1.0% of Brunswick Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MarineMax $1.04 billion 0.38 $52.85 million $1.01 14.75
Brunswick Corporation $4.58 billion 1.16 $589.80 million $3.00 19.88

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.

Risk and Volatility

MarineMax has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Brunswick Corporation has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for MarineMax and Brunswick Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MarineMax 0 1 4 0 2.80
Brunswick Corporation 0 3 8 0 2.73

MarineMax currently has a consensus target price of $23.20, suggesting a potential upside of 55.70%. Brunswick Corporation has a consensus target price of $66.56, suggesting a potential upside of 11.58%. Given MarineMax’s stronger consensus rating and higher possible upside, analysts plainly believe MarineMax is more favorable than Brunswick Corporation.

Profitability

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

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

Summary

Brunswick Corporation beats MarineMax on 12 of the 17 factors compared between the two stocks.

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.

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.

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