Head to Head Survey: MarineMax (NYSE:HZO) versus DICK’S Sporting Goods (NYSE:DKS)

MarineMax (NYSE:HZO) and DICK’S Sporting Goods (NYSE:DKS) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for MarineMax and DICK’S Sporting Goods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarineMax	2	0	5	0	2.43
DICK’S Sporting Goods	2	10	12	0	2.42

MarineMax presently has a consensus price target of $34.00, indicating a potential upside of 28.07%. DICK’S Sporting Goods has a consensus price target of $234.29, indicating a potential upside of 3.96%. Given MarineMax’s stronger consensus rating and higher possible upside, research analysts clearly believe MarineMax is more favorable than DICK’S Sporting Goods.

Profitability

This table compares MarineMax and DICK’S Sporting Goods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarineMax	-1.15%	2.63%	1.00%
DICK’S Sporting Goods	8.52%	36.54%	11.01%

Insider and Institutional Ownership

92.8% of MarineMax shares are held by institutional investors. Comparatively, 89.8% of DICK’S Sporting Goods shares are held by institutional investors. 4.0% of MarineMax shares are held by insiders. Comparatively, 32.6% of DICK’S Sporting Goods shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares MarineMax and DICK’S Sporting Goods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarineMax	$2.32 billion	0.25	$38.07 million	($1.34)	-19.81
DICK’S Sporting Goods	$13.44 billion	1.34	$1.17 billion	$14.32	15.74

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

Volatility & Risk

MarineMax has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, DICK’S Sporting Goods has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Summary

DICK’S Sporting Goods beats MarineMax on 10 of the 14 factors compared between the two stocks.

About MarineMax

MarineMax, Inc. operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates in two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, e-power yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage services; and boat or yacht brokerage services, as well as yacht charters and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates MarineMax vacations in Tortola and British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.

About DICK’S Sporting Goods

DICK’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.