Head-To-Head Comparison: Brunswick (NYSE:BC) versus Malibu Boats (NASDAQ:MBUU)

Brunswick (NYSE:BCGet Free Report) and Malibu Boats (NASDAQ:MBUUGet Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Brunswick 1.62% 12.88% 4.20%
Malibu Boats -1.19% 1.66% 1.16%

Institutional and Insider Ownership

99.3% of Brunswick shares are held by institutional investors. Comparatively, 91.4% of Malibu Boats shares are held by institutional investors. 0.9% of Brunswick shares are held by insiders. Comparatively, 1.2% of Malibu Boats shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Brunswick and Malibu Boats, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brunswick 0 7 7 0 2.50
Malibu Boats 0 6 1 0 2.14

Brunswick presently has a consensus price target of $70.00, indicating a potential upside of 26.42%. Malibu Boats has a consensus price target of $36.17, indicating a potential upside of 14.63%. Given Brunswick’s stronger consensus rating and higher probable upside, analysts clearly believe Brunswick is more favorable than Malibu Boats.

Valuation & Earnings

This table compares Brunswick and Malibu Boats”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brunswick $5.24 billion 0.69 $130.10 million $1.21 45.76
Malibu Boats $829.03 million 0.73 -$55.91 million ($0.41) -76.95

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

Volatility and Risk

Brunswick has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Malibu Boats has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

Brunswick beats Malibu Boats on 12 of the 14 factors compared between the two stocks.

About Brunswick

(Get Free Report)

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. It operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands. The Engine P&A segment offers engine parts and consumables, electrical products, boat parts and systems, and engine oils and lubricants through aftermarket retailers, dealers, distributors, and original equipment manufacturers for marine and non-marine markets under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands; and distributes marine parts and accessories. The Navico Group segment provides products and systems for the marine, recreational vehicle (RV), specialty vehicle, mobile, and industrial markets, as well as aftermarket channels; and marine electronics, sensors, control systems, instruments, power systems, and general accessories under the Ancor, Attwood, B&G, BEP, Blue Sea Systems, C-MAP, CZone, Lenco, Lowrance, Marinco, Mastervolt, MotorGuide, Progressive Industries, ProMariner, RELiON, Simrad, and Whale brand names. The Boat segment offers Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts, and Heyday wake boats; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; Thunder Jet heavy-gauge aluminum boats; Veer recreational and fishing boats; and the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.

About Malibu Boats

(Get Free Report)

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.

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