MarineMax (NYSE:HZO) and Arhaus (NASDAQ:ARHS) Critical Analysis

MarineMax (NYSE:HZO) and Arhaus (NASDAQ:ARHS) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Risk and Volatility

MarineMax has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Arhaus has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500.

Insider and Institutional Ownership

92.9% of MarineMax shares are held by institutional investors. Comparatively, 27.9% of Arhaus shares are held by institutional investors. 4.0% of MarineMax shares are held by insiders. Comparatively, 1.5% of Arhaus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for MarineMax and Arhaus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarineMax	2	0	6	0	2.50
Arhaus	0	11	3	0	2.21

MarineMax currently has a consensus price target of $33.00, indicating a potential upside of 34.50%. Arhaus has a consensus price target of $11.11, indicating a potential downside of 5.20%. Given MarineMax’s stronger consensus rating and higher possible upside, analysts plainly believe MarineMax is more favorable than Arhaus.

Earnings & Valuation

This table compares MarineMax and Arhaus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarineMax	$2.31 billion	0.23	-$31.63 million	($1.55)	-15.83
Arhaus	$1.27 billion	1.30	$68.55 million	$0.52	22.54

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MarineMax	-1.37%	2.00%	0.76%
Arhaus	5.40%	19.62%	5.61%

Summary

Arhaus beats MarineMax on 8 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 Arhaus

Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.