Head to Head Analysis: Group 1 Automotive (NYSE:GPI) & MarineMax (NYSE:HZO)

MarineMax (NYSE:HZO) and Group 1 Automotive (NYSE:GPI) 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, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Profitability

This table compares MarineMax and Group 1 Automotive’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%
Group 1 Automotive	1.31%	15.66%	4.43%

Insider & Institutional Ownership

92.8% of MarineMax shares are owned by institutional investors. Comparatively, 99.9% of Group 1 Automotive shares are owned by institutional investors. 3.2% of MarineMax shares are owned by company insiders. Comparatively, 2.4% of Group 1 Automotive shares are owned 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.

Volatility and Risk

MarineMax has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Group 1 Automotive has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for MarineMax and Group 1 Automotive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarineMax	0	7	1	0	2.12
Group 1 Automotive	2	3	5	0	2.30

MarineMax presently has a consensus target price of $43.00, indicating a potential downside of 17.77%. Group 1 Automotive has a consensus target price of $360.25, indicating a potential upside of 49.70%. Given Group 1 Automotive’s stronger consensus rating and higher possible upside, analysts clearly believe Group 1 Automotive is more favorable than MarineMax.

Earnings & Valuation

This table compares MarineMax and Group 1 Automotive”s gross 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	373.54
Group 1 Automotive	$22.57 billion	0.13	$325.20 million	$24.01	10.02

Group 1 Automotive has higher revenue and earnings than MarineMax. Group 1 Automotive is trading at a lower price-to-earnings ratio than MarineMax, indicating that it is currently the more affordable of the two stocks.

Summary

Group 1 Automotive beats MarineMax on 10 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 Group 1 Automotive

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.