Head-To-Head Survey: MCBC (MCFT) & General Dynamics (GD)

MCBC (NASDAQ: MCFT) and General Dynamics (NYSE:GD) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Risk & Volatility

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MCBC has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, General Dynamics has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Institutional and Insider Ownership

95.4% of MCBC shares are held by institutional investors. Comparatively, 86.1% of General Dynamics shares are held by institutional investors. 2.6% of MCBC shares are held by insiders. Comparatively, 6.9% of General Dynamics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares MCBC and General Dynamics’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MCBC $228.63 million 2.09 $19.57 million $1.26 20.30
General Dynamics $30.97 billion 2.09 $2.91 billion $9.95 21.95

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

Profitability

This table compares MCBC and General Dynamics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MCBC 9.07% 149.34% 21.40%
General Dynamics 9.40% 27.22% 8.85%

Analyst Ratings

This is a breakdown of recent ratings and price targets for MCBC and General Dynamics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MCBC 0 0 4 0 3.00
General Dynamics 2 4 11 0 2.53

MCBC currently has a consensus price target of $28.08, suggesting a potential upside of 9.79%. General Dynamics has a consensus price target of $241.53, suggesting a potential upside of 10.59%. Given General Dynamics’ higher possible upside, analysts plainly believe General Dynamics is more favorable than MCBC.

Dividends

General Dynamics pays an annual dividend of $3.72 per share and has a dividend yield of 1.7%. MCBC does not pay a dividend. General Dynamics pays out 37.4% of its earnings in the form of a dividend. General Dynamics has increased its dividend for 20 consecutive years.

Summary

General Dynamics beats MCBC on 11 of the 17 factors compared between the two stocks.

About MCBC

MCBC Holdings, Inc., through its subsidiaries, innovates, designs, manufactures, and markets recreational sport boats in North America and internationally. The company offers recreational performance sport boats, which are primarily used for water skiing, wakeboarding, and wake surfing, as well as general recreational boating. It distributes its recreational performance sport boats under the MasterCraft brand name. The company also offers recreational fishing boats under the Hydra-Sports brand name; and various accessories, such as trailers and aftermarket parts. It sells its products through a network of independent dealers. MCBC Holdings, Inc. was founded in 1968 and is based in Vonore, Tennessee.

About General Dynamics

General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; information technology (IT) services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions, and shipbuilding and ship repair. It operates through four business groups: Aerospace, Combat Systems, Information Systems and Technology, and Marine Systems. Its Aerospace group offers aircraft design; cockpit and cabin systems, and product service and support. Its Combat Systems group offers combat vehicles, weapons systems and munitions. The Information Systems and Technology group provides technologies, products and services in support of various programs. The Marine Systems group is a designer and builder of nuclear-powered submarines, surface combatants and auxiliary and combat-logistics ships.

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