MCBC Holdings (NASDAQ: MCFT) and Malibu Boats (NASDAQ:MBUU) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

95.5% of MCBC Holdings shares are held by institutional investors. Comparatively, 90.2% of Malibu Boats shares are held by institutional investors. 2.6% of MCBC Holdings shares are held by company insiders. Comparatively, 3.5% of Malibu Boats shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

MCBC Holdings has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Malibu Boats has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Profitability

This table compares MCBC Holdings and Malibu Boats’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MCBC Holdings 8.56% 443.78% 23.43%
Malibu Boats 10.06% 78.71% 13.05%

Earnings & Valuation

This table compares MCBC Holdings and Malibu Boats’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MCBC Holdings $228.63 million 1.87 $42.69 million $1.06 21.64
Malibu Boats $281.94 million 2.30 $51.68 million $1.58 20.23

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for MCBC Holdings and Malibu Boats, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MCBC Holdings 0 0 3 0 3.00
Malibu Boats 0 2 4 0 2.67

MCBC Holdings currently has a consensus target price of $25.00, indicating a potential upside of 8.98%. Malibu Boats has a consensus target price of $30.08, indicating a potential downside of 5.87%. Given MCBC Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe MCBC Holdings is more favorable than Malibu Boats.

About MCBC Holdings

MCBC Holdings, Inc. (MCBC) is a holding company. The Company is a designer and manufacturer of inboard tournament ski boats and V-drive runabouts under the MasterCraft brand. The Company operates through two segments: MasterCraft and Hydra-Sports. The MasterCraft product brand consists of recreational performance boats primarily used for water skiing, wakeboarding and wake surfing, and general recreational boating. The Company distributes the MasterCraft product brand through its dealer network. The Company manufactures a range of Hydra-Sports recreational fishing boats. It also leases a parts warehouse in the United Kingdom to expedite service, primarily to dealers and customers in the European Union. Its MasterCraft-branded portfolio includes Star Series, XSeries and NXT boats. In addition, MCBC offers various accessories, including trailers and aftermarket parts. The Company operates primarily through its subsidiaries, MasterCraft Boat Company, LLC and MCBC Hydra Boats, LLC.

About Malibu Boats

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.

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