Contrasting Mastercraft Boat (NASDAQ:MCFT) and Academy Sports and Outdoors (NASDAQ:ASO)

Academy Sports and Outdoors (NASDAQ:ASO) and Mastercraft Boat (NASDAQ:MCFT) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

97.6% of Mastercraft Boat shares are owned by institutional investors. 3.6% of Academy Sports and Outdoors shares are owned by insiders. Comparatively, 2.5% of Mastercraft Boat shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Academy Sports and Outdoors and Mastercraft Boat”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Academy Sports and Outdoors	$6.01 billion	0.66	$418.45 million	$5.47	10.87
Mastercraft Boat	$284.20 million	1.40	$7.04 million	$0.96	25.44

Academy Sports and Outdoors has higher revenue and earnings than Mastercraft Boat. Academy Sports and Outdoors is trading at a lower price-to-earnings ratio than Mastercraft Boat, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Academy Sports and Outdoors and Mastercraft Boat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Academy Sports and Outdoors	0	10	10	0	2.50
Mastercraft Boat	0	5	1	1	2.43

Academy Sports and Outdoors presently has a consensus price target of $59.89, suggesting a potential upside of 0.72%. Mastercraft Boat has a consensus price target of $23.60, suggesting a potential downside of 3.36%. Given Academy Sports and Outdoors’ stronger consensus rating and higher possible upside, analysts plainly believe Academy Sports and Outdoors is more favorable than Mastercraft Boat.

Volatility and Risk

Academy Sports and Outdoors has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Mastercraft Boat has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares Academy Sports and Outdoors and Mastercraft Boat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Academy Sports and Outdoors	6.27%	18.24%	7.18%
Mastercraft Boat	5.27%	9.51%	6.77%

Summary

Academy Sports and Outdoors beats Mastercraft Boat on 11 of the 15 factors compared between the two stocks.

About Academy Sports and Outdoors

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.

About Mastercraft Boat

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.