Analyzing Mastercraft Boat (NASDAQ:MCFT) & Kandi Technologies Group (NASDAQ:KNDI)

Mastercraft Boat (NASDAQ:MCFT) and Kandi Technologies Group (NASDAQ:KNDI) 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 analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Mastercraft Boat has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Kandi Technologies Group has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Insider and Institutional Ownership

97.6% of Mastercraft Boat shares are held by institutional investors. Comparatively, 3.7% of Kandi Technologies Group shares are held by institutional investors. 2.5% of Mastercraft Boat shares are held by company insiders. Comparatively, 16.8% of Kandi Technologies Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Mastercraft Boat and Kandi Technologies Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastercraft Boat	5.27%	9.51%	6.77%
Kandi Technologies Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mastercraft Boat and Kandi Technologies Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastercraft Boat	0	6	1	0	2.14
Kandi Technologies Group	1	0	0	0	1.00

Mastercraft Boat currently has a consensus target price of $24.40, indicating a potential upside of 1.08%. Given Mastercraft Boat’s stronger consensus rating and higher possible upside, research analysts clearly believe Mastercraft Boat is more favorable than Kandi Technologies Group.

Valuation and Earnings

This table compares Mastercraft Boat and Kandi Technologies Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastercraft Boat	$284.20 million	1.38	$7.04 million	$0.96	25.15
Kandi Technologies Group	$87.44 million	0.67	-$93.88 million	($0.30)	-2.37

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

Summary

Mastercraft Boat beats Kandi Technologies Group on 13 of the 14 factors compared between the two stocks.

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.

About Kandi Technologies Group

Kandi Technologies Group, Inc. engages in designing, developing, manufacturing, and commercializing electric vehicle (EV) products and parts in the People's Republic of China and the United States. It offers also off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts; and battery packs and smart battery swap system. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People's Republic of China.