Clarus (NASDAQ:CLAR – Get Free Report) and Massimo Group (NASDAQ:MAMO – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Profitability
This table compares Clarus and Massimo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clarus | -12.44% | 4.35% | 3.44% |
| Massimo Group | 6.04% | 17.60% | 8.59% |
Risk and Volatility
Clarus has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Massimo Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clarus | $252.85 million | 0.56 | -$46.56 million | ($0.82) | -4.52 |
| Massimo Group | $65.64 million | 0.64 | $1.51 million | $0.10 | 10.05 |
Massimo Group has lower revenue, but higher earnings 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.
Institutional & Insider Ownership
90.3% of Clarus shares are owned by institutional investors. 23.5% of Clarus shares are owned by insiders. Comparatively, 77.6% of Massimo Group shares are owned 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.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Clarus and Massimo Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clarus | 1 | 3 | 2 | 0 | 2.17 |
| Massimo Group | 1 | 0 | 0 | 0 | 1.00 |
Clarus currently has a consensus target price of $4.06, indicating a potential upside of 9.59%. Given Clarus’ stronger consensus rating and higher possible upside, equities analysts plainly believe Clarus is more favorable than Massimo Group.
Summary
Massimo Group beats Clarus on 8 of the 14 factors compared between the two stocks.
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.
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.
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