Ohio Art (OTCMKTS:OART) versus Mastercraft Boat (NASDAQ:MCFT) Financial Review

Mastercraft Boat (NASDAQ:MCFT) and Ohio Art (OTCMKTS:OART) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Mastercraft Boat has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Ohio Art has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mastercraft Boat and Ohio Art”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastercraft Boat	$284.20 million	1.43	$7.04 million	$0.68	36.74
Ohio Art	N/A	N/A	N/A	N/A	N/A

Mastercraft Boat has higher revenue and earnings than Ohio Art.

Analyst Ratings

This is a breakdown of current ratings and price targets for Mastercraft Boat and Ohio Art, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastercraft Boat	0	6	1	0	2.14
Ohio Art	0	0	0	0	0.00

Mastercraft Boat presently has a consensus target price of $25.40, indicating a potential upside of 1.68%. Given Mastercraft Boat’s stronger consensus rating and higher probable upside, analysts clearly believe Mastercraft Boat is more favorable than Ohio Art.

Profitability

This table compares Mastercraft Boat and Ohio Art’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastercraft Boat	3.72%	10.56%	7.47%
Ohio Art	N/A	N/A	N/A

Institutional and Insider Ownership

97.6% of Mastercraft Boat shares are owned by institutional investors. 2.5% of Mastercraft Boat shares are owned by insiders. Comparatively, 44.6% of Ohio Art shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Mastercraft Boat beats Ohio Art on 9 of the 10 factors compared between the two stocks.

About Mastercraft Boat

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.

About Ohio Art

The Ohio Art Company, Inc. offers lithography services for metal packaging and products. It provides custom metal signs, metal prints, custom tins, and metal packaging services. The company was founded in 1908 and is headquartered in Bryan, Ohio.