BRP (NASDAQ:DOOO) & Malibu Boats (NASDAQ:MBUU) Head to Head Review

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

Profitability

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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Malibu Boats	$807.56 million	0.71	$14.88 million	($0.06)	-488.83
BRP	$8.03 billion	0.59	-$154.60 million	$0.37	174.35

Malibu Boats has higher earnings, but lower revenue 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.

Institutional & Insider Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings for Malibu Boats and BRP, as provided by MarketBeat.

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

Malibu Boats presently has a consensus target price of $31.60, indicating a potential upside of 7.74%. BRP has a consensus target price of $94.75, indicating a potential upside of 46.88%. Given BRP’s stronger consensus rating and higher possible upside, analysts clearly believe BRP is more favorable than Malibu Boats.

Risk & Volatility

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

Summary

BRP beats Malibu Boats on 11 of the 15 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 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.