Critical Analysis: Marine Products (NYSE:MPX) and YETI (NYSE:YETI)

Marine Products (NYSE:MPX) and YETI (NYSE:YETI) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares Marine Products and YETI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marine Products	$244.42 million	1.13	$11.38 million	$0.32	24.69
YETI	$1.87 billion	1.99	$175.69 million	$1.92	24.85

YETI has higher revenue and earnings than Marine Products. Marine Products is trading at a lower price-to-earnings ratio than YETI, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Marine Products has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, YETI has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Marine Products and YETI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marine Products	1	0	0	0	1.00
YETI	0	7	9	0	2.56

YETI has a consensus target price of $49.38, indicating a potential upside of 3.50%. Given YETI’s stronger consensus rating and higher probable upside, analysts clearly believe YETI is more favorable than Marine Products.

Institutional and Insider Ownership

13.9% of Marine Products shares are owned by institutional investors. 75.2% of Marine Products shares are owned by company insiders. Comparatively, 0.9% of YETI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Marine Products and YETI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marine Products	4.66%	9.81%	6.96%
YETI	8.85%	22.53%	13.06%

Summary

YETI beats Marine Products on 11 of the 14 factors compared between the two stocks.

About Marine Products

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sport boat and sport fishing boat markets worldwide. The company offers Chaparral sterndrive pleasure boats, including SSi Sport Boats, SSX Sport Boats, and the Surf Series; Chaparral outboard pleasure boats, which include OSX Luxury Sportboats and SSi outboard models; and Robalo outboard sport fishing boats. It also provides center and dual consoles, and Cayman Bay Boats under the Robalo brand name. The company sells its products to a network of domestic and international independent authorized dealers. Marine Products Corporation was founded in 1965 and is based in Atlanta, Georgia. Marine Products Corporation operates as a subsidiary of LOR, Inc.

About YETI

YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands. The company also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, mugs, tumblers, straw mugs and cups, bottles, jugs, and water bottles, as well as accessories comprising bottle straw and chug caps, lids, straw lids, color packs, tumbler handles, and jug mounts under the Rambler brand. In addition, it offers apparel and gear products, such as hats, shirts, bottle openers, and ice substitutes. The company sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through its Website, YETI.com. It operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. YETI Holdings, Inc. was founded in 2006 and is headquartered in Austin, Texas.