RH (NYSE:RH) & OneWater Marine (NASDAQ:ONEW) Financial Contrast

RH (NYSE:RH) and OneWater Marine (NASDAQ:ONEW) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for RH and OneWater Marine, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RH	3	9	7	0	2.21
OneWater Marine	1	2	2	0	2.20

RH currently has a consensus target price of $163.00, suggesting a potential upside of 24.27%. OneWater Marine has a consensus target price of $13.00, suggesting a potential upside of 35.70%. Given OneWater Marine’s higher possible upside, analysts plainly believe OneWater Marine is more favorable than RH.

Institutional and Insider Ownership

90.2% of RH shares are held by institutional investors. Comparatively, 94.3% of OneWater Marine shares are held by institutional investors. 26.9% of RH shares are held by insiders. Comparatively, 19.5% of OneWater Marine shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RH	3.23%	132.79%	1.63%
OneWater Marine	-6.72%	2.20%	0.44%

Earnings & Valuation

This table compares RH and OneWater Marine”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RH	$3.44 billion	0.72	$124.79 million	$5.62	23.34
OneWater Marine	$1.87 billion	0.09	-$114.58 million	($7.46)	-1.28

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

Volatility & Risk

RH has a beta of 1.92, suggesting that its stock price is 92% more volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Summary

RH beats OneWater Marine on 12 of the 14 factors compared between the two stocks.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

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.