Winnebago Industries (NYSE: WGO) and MarineMax (NYSE:HZO) are both small-cap construction companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares Winnebago Industries and MarineMax’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Winnebago Industries 4.39% 20.01% 9.71%
MarineMax 2.45% 7.53% 3.92%

Dividends

Winnebago Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. MarineMax does not pay a dividend. Winnebago Industries pays out 20.0% of its earnings in the form of a dividend. Winnebago Industries has increased its dividend for 2 consecutive years.

Risk and Volatility

Winnebago Industries has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500. Comparatively, MarineMax has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Institutional and Insider Ownership

79.6% of Winnebago Industries shares are held by institutional investors. Comparatively, 91.1% of MarineMax shares are held by institutional investors. 1.5% of Winnebago Industries shares are held by company insiders. Comparatively, 5.0% of MarineMax shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Winnebago Industries and MarineMax’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Winnebago Industries $1.36 billion 0.80 $115.70 million $2.00 17.18
MarineMax $1.03 billion 0.35 $53.94 million $1.01 14.90

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

Analyst Ratings

This is a summary of recent recommendations for Winnebago Industries and MarineMax, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Winnebago Industries 0 1 6 0 2.86
MarineMax 0 1 4 0 2.80

Winnebago Industries currently has a consensus price target of $35.20, indicating a potential upside of 2.47%. MarineMax has a consensus price target of $23.20, indicating a potential upside of 54.15%. Given MarineMax’s higher possible upside, analysts clearly believe MarineMax is more favorable than Winnebago Industries.

Summary

Winnebago Industries beats MarineMax on 13 of the 17 factors compared between the two stocks.

Winnebago Industries Company Profile

Winnebago Industries, Inc. is a manufacturer of recreation vehicles (RVs) used primarily in leisure travel and outdoor recreation activities. The Company designs, develops, manufactures and markets motorized and towable recreation products along with supporting products and services. Its other products manufactured by the Company consist of original equipment manufacturer (OEM) parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. The Company offers products under categories, which include motorhomes, towables and other manufactured products. The Company produces all of its motorhomes in vertically integrated manufacturing facilities in Iowa and it produces all travel trailer and fifth wheel trailers in Indiana. The Company operates under the brand, Winnebago. The Company distributes its products primarily through independent dealers throughout the United States and Canada, who then retail the products to the end consumer.

MarineMax Company Profile

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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