MarineMax (NYSE: HZO) and LCI Industries (NYSE:LCII) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Volatility and Risk

MarineMax has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

98.7% of MarineMax shares are owned by institutional investors. Comparatively, 99.5% of LCI Industries shares are owned by institutional investors. 5.0% of MarineMax shares are owned by insiders. Comparatively, 3.6% of LCI Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for MarineMax and LCI Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MarineMax 0 3 3 1 2.71
LCI Industries 1 0 3 0 2.50

MarineMax currently has a consensus target price of $21.67, suggesting a potential downside of 0.84%. LCI Industries has a consensus target price of $123.00, suggesting a potential downside of 5.49%. Given MarineMax’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MarineMax is more favorable than LCI Industries.

Dividends

LCI Industries pays an annual dividend of $2.20 per share and has a dividend yield of 1.7%. MarineMax does not pay a dividend. LCI Industries pays out 39.2% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
MarineMax 2.24% 7.82% 3.89%
LCI Industries 7.07% 23.60% 16.10%

Valuation & Earnings

This table compares MarineMax and LCI Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MarineMax $1.05 billion 0.49 $23.54 million $0.95 23.00
LCI Industries $1.68 billion 1.93 $129.67 million $5.61 23.20

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

Summary

LCI Industries beats MarineMax on 11 of the 16 factors compared between the two stocks.

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.

LCI Industries Company Profile

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

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