Contrasting Clarus (NASDAQ:CLAR) & OneWater Marine (NASDAQ:ONEW)

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

Analyst Ratings

This is a summary of current ratings and target prices for Clarus and OneWater Marine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clarus	1	2	2	0	2.20
OneWater Marine	2	3	3	0	2.13

Clarus presently has a consensus target price of $4.75, suggesting a potential upside of 31.58%. OneWater Marine has a consensus target price of $19.00, suggesting a potential upside of 44.27%. Given OneWater Marine’s higher probable upside, analysts plainly believe OneWater Marine is more favorable than Clarus.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clarus	-31.52%	-4.30%	-3.40%
OneWater Marine	-6.12%	1.97%	0.46%

Volatility and Risk

Clarus has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Insider & Institutional Ownership

90.3% of Clarus shares are held by institutional investors. Comparatively, 94.3% of OneWater Marine shares are held by institutional investors. 22.3% of Clarus shares are held by insiders. Comparatively, 20.3% of OneWater Marine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Clarus and OneWater Marine”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarus	$264.32 million	0.52	-$52.29 million	($2.11)	-1.71
OneWater Marine	$1.87 billion	0.12	-$114.58 million	($7.08)	-1.86

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

Summary

OneWater Marine beats Clarus on 8 of the 14 factors compared between the two stocks.

About Clarus

Clarus Corporation designs, develops, manufactures, and distributes outdoor equipment and lifestyle products in the United States and internationally. The company operates through two segments, Outdoor and Adventure. The Outdoor segment offers apparels, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; and skis, ski poles, ski skins, avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment and PIEPS brands. The Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand, as well as sells and retails overlanding and off-road vehicle under the TRED brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was formerly known as Black Diamond, Inc. and changed its name to Clarus Corporation in August 2017. The company was founded in 1957 and is headquartered in Salt Lake City, Utah.

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.