Head-To-Head Contrast: LCI Industries (DW) vs. MarineMax (HZO)

LCI Industries (NYSE: DW) and MarineMax (NYSE:HZO) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitabiliy, risk, analyst recommendations and dividends.

Profitability

This table compares LCI Industries and MarineMax’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LCI Industries 8.66% 30.50% 21.11%
MarineMax 2.40% 7.67% 4.08%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LCI Industries and MarineMax, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 0 0 3 0 3.00
MarineMax 0 1 4 0 2.80

LCI Industries presently has a consensus target price of $116.67, indicating a potential upside of 8.28%. MarineMax has a consensus target price of $24.40, indicating a potential upside of 33.70%. Given MarineMax’s higher possible upside, analysts clearly believe MarineMax is more favorable than LCI Industries.

Earnings & Valuation

This table compares LCI Industries and MarineMax’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LCI Industries N/A N/A N/A $4.80 22.45
MarineMax $1.04 billion 0.43 $52.85 million $1.01 18.07

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

Institutional & Insider Ownership

93.6% of LCI Industries shares are owned by institutional investors. Comparatively, 91.3% of MarineMax shares are owned by institutional investors. 3.8% of LCI Industries shares are owned by insiders. Comparatively, 5.0% of MarineMax shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

LCI Industries pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. MarineMax does not pay a dividend. LCI Industries pays out 41.7% of its earnings in the form of a dividend.

Volatility and Risk

LCI Industries has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, MarineMax has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Summary

LCI Industries beats MarineMax on 8 of the 13 factors compared between the two stocks.

About LCI Industries

LCI Industries, formerly Drew Industries Incorporated, through its subsidiary, Lippert Components, Inc. and its subsidiaries (LCI), supplies an array of components for the original equipment manufacturers (OEMs) of recreational vehicles (RVs) and adjacent industries. The Company’s segments include OEM Segment and Aftermarket Segment. The OEM Segment manufactures or distributes an array of components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; pontoon boats; manufactured homes; modular housing, and mobile office units. The Aftermarket Segment supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

About MarineMax

MarineMax, Inc. is a recreational boat and yacht dealer in the United States. Through 56 retail locations in Alabama, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, and Texas, the Company sold new and used recreational boats, including pleasure and fishing boats, as of September 30, 2016. The Company also sells related marine products, including engines, trailers, parts and accessories. In addition, it provides repair, maintenance, and slip and storage services; arranges related boat financing, insurance, and extended service contracts; offers boat and yacht brokerage sales, and operates a yacht charter business. The Company primarily sells recreational boats, including pleasure boats and fishing boats. The Company offers marine engines and equipment and sells marine engines and propellers primarily to retail customers as replacements for their existing engines or propellers.

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