Head to Head Review: RH (NYSE:RH) vs. OneWater Marine (NASDAQ:ONEW)

OneWater Marine (NASDAQ:ONEW) and RH (NYSE:RH) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Valuation and Earnings

This table compares OneWater Marine and RH”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneWater Marine	$1.87 billion	0.09	-$114.58 million	($7.46)	-1.29
RH	$3.44 billion	0.69	$124.79 million	$5.62	22.47

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

Risk & Volatility

OneWater Marine has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, RH has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for OneWater Marine and RH, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneWater Marine	1	2	2	0	2.20
RH	3	9	7	0	2.21

OneWater Marine currently has a consensus target price of $13.00, suggesting a potential upside of 34.78%. RH has a consensus target price of $163.00, suggesting a potential upside of 29.10%. Given OneWater Marine’s higher probable upside, analysts clearly believe OneWater Marine is more favorable than RH.

Profitability

This table compares OneWater Marine and RH’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneWater Marine	-6.72%	2.20%	0.44%
RH	3.23%	132.79%	1.63%

Institutional and Insider Ownership

94.3% of OneWater Marine shares are owned by institutional investors. Comparatively, 90.2% of RH shares are owned by institutional investors. 19.5% of OneWater Marine shares are owned by insiders. Comparatively, 26.9% of RH shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

RH beats OneWater Marine on 12 of the 14 factors compared between the two stocks.

About OneWater Marine

OneWater Marine, Inc. is a recreational marine retailer that sells new and pre-owned boats through a network of dealerships across the United States. Its offerings include a range of recreational vessels, such as fishing boats, pontoons, sport boats and yachts. The company also provides boating-related services, including maintenance and repairs, parts and accessories, and financing and insurance assistance. These services support customers throughout the boat ownership process. OneWater Marine was established in 2014 and grew through the combination and acquisition of marine dealerships.

About RH

RH, formerly known as Restoration Hardware, is a luxury home-furnishings company. It offers furniture, lighting, textiles, rugs, bath and outdoor products, décor, and related design services for residential and commercial spaces. The company sells through its website, catalogs and design-focused retail galleries, which may include restaurants and other hospitality features. RH serves customers primarily in the United States and Canada and has also established a presence in the United Kingdom. Founded in 1979 in Eureka, California, the company adopted the RH name in 2012.