Comparing Williams-Sonoma (NYSE:WSM) & MarineMax (NYSE:HZO)

MarineMax (NYSE:HZO) and Williams-Sonoma (NYSE:WSM) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares MarineMax and Williams-Sonoma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarineMax	$2.31 billion	0.50	-$31.63 million	$0.14	372.29
Williams-Sonoma	$7.81 billion	3.34	$1.09 billion	$9.77	22.69

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

Volatility and Risk

MarineMax has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Williams-Sonoma has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares MarineMax and Williams-Sonoma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarineMax	0.18%	1.51%	0.59%
Williams-Sonoma	14.73%	53.48%	20.50%

Analyst Ratings

This is a breakdown of current recommendations and price targets for MarineMax and Williams-Sonoma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarineMax	0	7	1	0	2.12
Williams-Sonoma	0	8	10	0	2.56

MarineMax presently has a consensus target price of $43.00, indicating a potential downside of 17.50%. Williams-Sonoma has a consensus target price of $245.56, indicating a potential upside of 10.79%. Given Williams-Sonoma’s stronger consensus rating and higher possible upside, analysts plainly believe Williams-Sonoma is more favorable than MarineMax.

Institutional & Insider Ownership

92.8% of MarineMax shares are held by institutional investors. Comparatively, 99.3% of Williams-Sonoma shares are held by institutional investors. 3.2% of MarineMax shares are held by company insiders. Comparatively, 1.1% of Williams-Sonoma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Williams-Sonoma beats MarineMax on 11 of the 14 factors compared between the two stocks.

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.

About Williams-Sonoma

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; personalized products and custom gifts under the Mark and Graham brand; and colorful and vintage-inspired heirloom products under the GreenRow, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry under the Outward brand. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.