WillScot Mobile Mini (NASDAQ:WSC) and Malibu Boats (NASDAQ:MBUU) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
Insider & Institutional Ownership
29.9% of WillScot Mobile Mini shares are held by institutional investors. Comparatively, 97.5% of Malibu Boats shares are held by institutional investors. 63.5% of WillScot Mobile Mini shares are held by insiders. Comparatively, 1.7% of Malibu Boats shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares WillScot Mobile Mini and Malibu Boats' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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WillScot Mobile Mini | $1.06 billion | 5.83 | $-11,120,000.00 | $0.23 | 118.26 |
Malibu Boats | $653.16 million | 2.51 | $61.56 million | $3.18 | 24.87 |
Malibu Boats has lower revenue, but higher earnings than WillScot Mobile Mini. Malibu Boats is trading at a lower price-to-earnings ratio than WillScot Mobile Mini, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
WillScot Mobile Mini has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500. Comparatively, Malibu Boats has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for WillScot Mobile Mini and Malibu Boats, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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WillScot Mobile Mini | 0 | 2 | 8 | 0 | 2.80 |
Malibu Boats | 0 | 0 | 7 | 0 | 3.00 |
WillScot Mobile Mini presently has a consensus target price of $24.50, indicating a potential downside of 9.93%. Malibu Boats has a consensus target price of $79.00, indicating a potential downside of 0.11%. Given Malibu Boats' stronger consensus rating and higher possible upside, analysts clearly believe Malibu Boats is more favorable than WillScot Mobile Mini.
Profitability
This table compares WillScot Mobile Mini and Malibu Boats' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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WillScot Mobile Mini | 1.70% | 6.95% | 1.60% |
Malibu Boats | 10.09% | 28.93% | 14.40% |
Summary
Malibu Boats beats WillScot Mobile Mini on 8 of the 14 factors compared between the two stocks.