Critical Comparison: ATC Venture Group (OTCMKTS:ATCV) and Malibu Boats (NASDAQ:MBUU)

Malibu Boats (NASDAQ:MBUU) and ATC Venture Group (OTCMKTS:ATCV) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Malibu Boats and ATC Venture Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Malibu Boats	1	6	2	0	2.11
ATC Venture Group	0	0	0	0	0.00

Malibu Boats presently has a consensus target price of $34.67, indicating a potential upside of 6.67%. Given Malibu Boats’ stronger consensus rating and higher probable upside, equities analysts clearly believe Malibu Boats is more favorable than ATC Venture Group.

Profitability

This table compares Malibu Boats and ATC Venture Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Malibu Boats	2.31%	5.28%	3.66%
ATC Venture Group	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Malibu Boats	$807.56 million	0.77	$14.88 million	$0.98	33.16
ATC Venture Group	N/A	N/A	N/A	N/A	N/A

Malibu Boats has higher revenue and earnings than ATC Venture Group.

Insider & Institutional Ownership

91.4% of Malibu Boats shares are held by institutional investors. 1.2% of Malibu Boats shares are held by insiders. Comparatively, 49.9% of ATC Venture Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Malibu Boats beats ATC Venture Group on 8 of the 9 factors compared between the two stocks.

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.

About ATC Venture Group

ATC Venture Group Inc., through its subsidiary, Simonsen Iron Works Inc., engages in the design, manufacture, and assembly of an array of parts for original equipment manufacturers and other customers. The company was formerly known as Cycle Country Accessories Corp. and changed its name to ATC Venture Group Inc. in January 2012. ATC Venture Group Inc. was incorporated in 1906 and is based in Minnetonka, Minnesota.