Analyzing OneWater Marine (NASDAQ:ONEW) & RH (NYSE:RH)

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

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.

Insider & Institutional 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.

Valuation & Earnings

This table compares OneWater Marine and RH”s 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)	-1.28
RH	$3.44 billion	0.72	$124.79 million	$5.62	23.34

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.

Analyst Ratings

This is a breakdown of current ratings and price targets for OneWater Marine and RH, as provided by MarketBeat.com.

	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, indicating a potential upside of 35.70%. RH has a consensus target price of $163.00, indicating a potential upside of 24.27%. Given OneWater Marine’s higher probable upside, equities 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%

Summary

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

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.