Critical Survey: Massimo Group (NASDAQ:MAMO) & OneWater Marine (NASDAQ:ONEW)

Massimo Group (NASDAQ:MAMO) and OneWater Marine (NASDAQ:ONEW) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Massimo Group and OneWater Marine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Massimo Group	3.72%	12.15%	5.77%
OneWater Marine	-6.69%	2.22%	0.47%

Risk & Volatility

Massimo Group has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Massimo Group and OneWater Marine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Massimo Group	1	0	0	0	1.00
OneWater Marine	1	2	2	0	2.20

OneWater Marine has a consensus target price of $14.00, suggesting a potential upside of 22.59%. Given OneWater Marine’s stronger consensus rating and higher probable upside, analysts plainly believe OneWater Marine is more favorable than Massimo Group.

Valuation and Earnings

This table compares Massimo Group and OneWater Marine”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Massimo Group	$71.83 million	0.57	$1.51 million	$0.07	14.06
OneWater Marine	$1.87 billion	0.10	-$114.58 million	($7.50)	-1.52

Massimo Group has higher earnings, but lower revenue than OneWater Marine. OneWater Marine is trading at a lower price-to-earnings ratio than Massimo Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.3% of OneWater Marine shares are owned by institutional investors. 77.6% of Massimo Group shares are owned by insiders. Comparatively, 19.5% of OneWater Marine shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Massimo Group beats OneWater Marine on 8 of the 14 factors compared between the two stocks.

About Massimo Group

Massimo Group, through its subsidiaries, engages in the manufacturing and sale of utility terrain vehicles, all-terrain vehicles, and pontoon and tritoon boats. The company also offers motorcycles, scooters, golf carts, and go karts and balance bikes, as well as snow equipment. In addition, it provides accessories, including EV chargers, electric coolers, power stations, and portable solar panels. The company sells its products through a network of dealerships, distributors, and chain stores, as well as the e-commerce marketplace. Massimo Group was founded in 2009 and is based in Garland, Texas.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.