Reviewing Massimo Group (NASDAQ:MAMO) and Malibu Boats (NASDAQ:MBUU)

Massimo Group (NASDAQ:MAMO) and Malibu Boats (NASDAQ:MBUU) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Earnings and Valuation

This table compares Massimo Group and Malibu Boats”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Massimo Group	$70.86 million	0.56	$1.76 million	($0.02)	-48.00
Malibu Boats	$807.56 million	0.60	$14.88 million	$0.73	35.96

Malibu Boats has higher revenue and earnings than Massimo Group. Massimo Group is trading at a lower price-to-earnings ratio than Malibu Boats, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Massimo Group and Malibu Boats’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Massimo Group	-1.17%	-3.96%	-1.72%
Malibu Boats	1.76%	4.25%	2.95%

Institutional & Insider Ownership

91.4% of Malibu Boats shares are held by institutional investors. 78.0% of Massimo Group shares are held by company insiders. Comparatively, 1.2% of Malibu Boats shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Massimo Group has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Malibu Boats has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Massimo Group and Malibu Boats, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Massimo Group	1	0	0	0	1.00
Malibu Boats	1	5	1	0	2.00

Malibu Boats has a consensus price target of $32.33, suggesting a potential upside of 23.17%. Given Malibu Boats’ stronger consensus rating and higher probable upside, analysts plainly believe Malibu Boats is more favorable than Massimo Group.

Summary

Malibu Boats beats Massimo Group on 13 of the 14 factors compared between the two stocks.

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.

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.