Comparing Malibu Boats (NASDAQ:MBUU) and BRP (NASDAQ:DOOO)

BRP (NASDAQ:DOOO) and Malibu Boats (NASDAQ:MBUU) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for BRP and Malibu Boats, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRP	0	4	8	1	2.77
Malibu Boats	1	4	1	0	2.00

BRP currently has a consensus target price of $94.75, suggesting a potential upside of 38.97%. Malibu Boats has a consensus target price of $31.60, suggesting a potential upside of 8.82%. Given BRP’s stronger consensus rating and higher probable upside, analysts clearly believe BRP is more favorable than Malibu Boats.

Risk and Volatility

BRP has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Malibu Boats has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares BRP and Malibu Boats’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRP	0.45%	67.30%	4.72%
Malibu Boats	-0.11%	3.28%	2.11%

Insider & Institutional Ownership

91.3% of Malibu Boats shares are owned by institutional investors. 1.2% of Malibu Boats shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares BRP and Malibu Boats”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRP	$8.03 billion	0.62	-$154.60 million	$0.37	184.27
Malibu Boats	$826.09 million	0.69	$14.88 million	($0.06)	-484.00

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

Summary

BRP beats Malibu Boats on 11 of the 15 factors compared between the two stocks.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.

About Malibu Boats

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.