RH (NYSE:RH) vs. OneWater Marine (NASDAQ:ONEW) Financial Analysis

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for OneWater Marine and RH, as provided by MarketBeat.

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

OneWater Marine presently has a consensus target price of $13.00, suggesting a potential upside of 31.31%. RH has a consensus target price of $163.00, suggesting a potential upside of 21.01%. Given OneWater Marine’s higher probable upside, equities analysts plainly believe OneWater Marine is more favorable than RH.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneWater Marine	$1.81 billion	0.09	-$114.58 million	($7.46)	-1.33
RH	$3.44 billion	0.74	$124.79 million	$5.62	23.97

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.

Insider and Institutional Ownership

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

Volatility & Risk

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

Summary

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

About OneWater Marine

OneWater Marine Inc. (NASDAQ: ONEW) is a recreational boat retailer and marine services company. The company operates a network of dealerships in the United States that sells new and pre-owned boats, including freshwater, saltwater, and specialty vessels from a range of manufacturers and brands. In addition to boat sales, OneWater Marine provides related products and services such as marine parts and accessories, maintenance and repair, storage, financing, insurance, and other boating services. Its dealerships also support customers with boat brokerage, trade-ins, and after-sale service.

About RH

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company. It offers furniture, lighting, textiles, rugs, bath and outdoor products, décor, and related design services for residential and commercial spaces. The company sells through its website, catalogs and design-focused retail galleries, which may include restaurants and other hospitality features. RH serves customers primarily in the United States and Canada and has also established a presence in the United Kingdom. Founded in 1979 in Eureka, California, the company adopted the RH name in 2012.