Critical Survey: Valvoline (NYSE:VVV) versus MarineMax (NYSE:HZO)

Valvoline (NYSE:VVV) and MarineMax (NYSE:HZO) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Volatility & Risk

Valvoline has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, MarineMax has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Insider and Institutional Ownership

96.1% of Valvoline shares are owned by institutional investors. Comparatively, 92.8% of MarineMax shares are owned by institutional investors. 0.7% of Valvoline shares are owned by insiders. Comparatively, 3.2% of MarineMax shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Valvoline and MarineMax”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valvoline	$1.96 billion	1.96	$210.70 million	$0.80	37.77
MarineMax	$2.31 billion	0.50	-$31.63 million	$0.14	373.61

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valvoline	5.17%	65.12%	7.11%
MarineMax	0.18%	1.51%	0.59%

Analyst Ratings

This is a summary of current ratings for Valvoline and MarineMax, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valvoline	0	5	12	0	2.71
MarineMax	0	7	1	0	2.12

Valvoline presently has a consensus price target of $43.06, indicating a potential upside of 42.48%. MarineMax has a consensus price target of $43.00, indicating a potential downside of 17.79%. Given Valvoline’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Valvoline is more favorable than MarineMax.

Summary

Valvoline beats MarineMax on 10 of the 14 factors compared between the two stocks.

About Valvoline

Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.

About MarineMax

MarineMax, Inc. operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates in two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, e-power yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage services; and boat or yacht brokerage services, as well as yacht charters and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates MarineMax vacations in Tortola and British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.