Financial Review: Brunswick Corporation (BC) & MarineMax (HZO)

Brunswick Corporation (NYSE: BC) and MarineMax (NYSE:HZO) 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, risk, analyst recommendations, profitabiliy, dividends, valuation and earnings.

Valuation & Earnings

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

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

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.

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%

Risk and Volatility

Brunswick Corporation has a beta of 1.84, meaning that its share price is 84% 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.

Insider and 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 company insiders. Comparatively, 5.0% of MarineMax shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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.

Analyst Recommendations

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

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

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

Summary

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

Brunswick Corporation Company Profile

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.

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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