Reviewing MarineMax (NYSE:HZO) & Winmark (NASDAQ:WINA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Winmark	49.48%	-98.49%	103.78%
MarineMax	-1.15%	2.63%	1.00%

Analyst Recommendations

This is a summary of recent recommendations for Winmark and MarineMax, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winmark	0	0	0	0	0.00
MarineMax	0	0	5	0	3.00

MarineMax has a consensus target price of $33.25, suggesting a potential upside of 24.30%. Given MarineMax’s stronger consensus rating and higher probable upside, analysts clearly believe MarineMax is more favorable than Winmark.

Institutional and Insider Ownership

73.3% of Winmark shares are held by institutional investors. Comparatively, 92.9% of MarineMax shares are held by institutional investors. 10.1% of Winmark shares are held by insiders. Comparatively, 4.0% of MarineMax shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Winmark has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, MarineMax has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winmark	$83.40 million	21.87	$39.95 million	$11.23	45.77
MarineMax	$2.43 billion	0.24	$38.07 million	($1.34)	-19.96

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

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

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.