Contrasting Johnson Outdoors (NASDAQ:JOUT) and Mastercraft Boat (NASDAQ:MCFT)

Johnson Outdoors (NASDAQ:JOUT) and Mastercraft Boat (NASDAQ:MCFT) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Earnings & Valuation

This table compares Johnson Outdoors and Mastercraft Boat”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Outdoors	$562.53 million	0.70	-$26.53 million	($3.87)	-9.80
Mastercraft Boat	$287.85 million	1.02	$7.04 million	$0.97	18.62

Mastercraft Boat has lower revenue, but higher earnings than Johnson Outdoors. Johnson Outdoors is trading at a lower price-to-earnings ratio than Mastercraft Boat, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Johnson Outdoors and Mastercraft Boat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson Outdoors	-7.02%	-8.80%	-6.30%
Mastercraft Boat	5.50%	8.09%	5.73%

Institutional and Insider Ownership

64.1% of Johnson Outdoors shares are owned by institutional investors. Comparatively, 97.6% of Mastercraft Boat shares are owned by institutional investors. 28.0% of Johnson Outdoors shares are owned by company insiders. Comparatively, 2.5% of Mastercraft Boat shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Johnson Outdoors has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Mastercraft Boat has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Johnson Outdoors and Mastercraft Boat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Outdoors	1	1	0	0	1.50
Mastercraft Boat	0	6	1	1	2.38

Mastercraft Boat has a consensus target price of $23.00, suggesting a potential upside of 27.35%. Given Mastercraft Boat’s stronger consensus rating and higher possible upside, analysts plainly believe Mastercraft Boat is more favorable than Johnson Outdoors.

Summary

Mastercraft Boat beats Johnson Outdoors on 13 of the 15 factors compared between the two stocks.

About Johnson Outdoors

Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide. It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving. The Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing. This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors. The Camping segment provides consumer, commercial, and military tents and accessories; camping stoves; other recreational camping products; and portable outdoor cooking systems. This segment sells its products under the Eureka! and Jetboil brands through specialty stores, sporting goods stores, internet retailers, and direct to consumers. The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under Old Town and Carlisle brands. The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name. This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, and public safety units. It sells its products through websites. The company was founded in 1970 and is headquartered in Racine, Wisconsin.

About Mastercraft Boat

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.