Head-To-Head Review: Clarus (NASDAQ:CLAR) vs. Massimo Group (NASDAQ:MAMO)

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

Volatility & Risk

Massimo Group has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Clarus has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Massimo Group	$65.64 million	0.63	$1.51 million	$0.10	10.00
Clarus	$250.44 million	0.57	-$46.56 million	($0.82)	-4.54

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Massimo Group and Clarus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Massimo Group	1	0	0	0	1.00
Clarus	1	3	2	0	2.17

Clarus has a consensus price target of $4.06, suggesting a potential upside of 9.21%. Given Clarus’ stronger consensus rating and higher possible upside, analysts clearly believe Clarus is more favorable than Massimo Group.

Institutional and Insider Ownership

90.3% of Clarus shares are held by institutional investors. 77.6% of Massimo Group shares are held by company insiders. Comparatively, 23.5% of Clarus shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Massimo Group and Clarus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Massimo Group	6.04%	17.60%	8.59%
Clarus	-12.44%	4.35%	3.44%

Summary

Massimo Group beats Clarus 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 Clarus

Clarus Corporation designs, develops, manufactures, and distributes outdoor equipment and lifestyle products in the United States and internationally. The company operates through two segments, Outdoor and Adventure. The Outdoor segment offers apparels, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; and skis, ski poles, ski skins, avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment and PIEPS brands. The Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand, as well as sells and retails overlanding and off-road vehicle under the TRED brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was formerly known as Black Diamond, Inc. and changed its name to Clarus Corporation in August 2017. The company was founded in 1957 and is headquartered in Salt Lake City, Utah.