Critical Review: Thor Industries (THO) & MarineMax (NYSE:HZO)

Thor Industries (NYSE: THO) and MarineMax (NYSE:HZO) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

90.4% of Thor Industries shares are owned by institutional investors. Comparatively, 91.6% of MarineMax shares are owned by institutional investors. 6.6% of Thor Industries shares are owned by insiders. Comparatively, 5.0% of MarineMax shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Thor Industries and MarineMax’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Thor Industries $6.60 billion 0.83 $598.38 million $6.40 16.34
MarineMax $1.03 billion 0.39 $53.94 million $1.01 15.30

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

Profitability

This table compares Thor Industries and MarineMax’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thor Industries 5.11% 24.83% 13.87%
MarineMax 2.45% 7.53% 3.92%

Dividends

Thor Industries pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. MarineMax does not pay a dividend. Thor Industries pays out 20.6% of its earnings in the form of a dividend. MarineMax has increased its dividend for 7 consecutive years.

Risk & Volatility

Thor Industries has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, MarineMax has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Thor Industries and MarineMax, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thor Industries 1 2 9 0 2.67
MarineMax 0 1 4 0 2.80

Thor Industries currently has a consensus price target of $109.50, indicating a potential upside of 4.73%. MarineMax has a consensus price target of $23.20, indicating a potential upside of 50.16%. Given MarineMax’s stronger consensus rating and higher possible upside, analysts plainly believe MarineMax is more favorable than Thor Industries.

Summary

Thor Industries beats MarineMax on 12 of the 17 factors compared between the two stocks.

About Thor Industries

Thor Industries, Inc. manufactures a range of recreational vehicles (RVs) in the United States and sells those vehicles primarily in the United States and Canada. The Company’s segments include towable recreational vehicles, which consists of the operations of Airstream, Inc. (Airstream) (towable); Heartland Recreational Vehicles, LLC (Heartland) (including Bison Coach, LLC (Bison), Cruiser RV, LLC (CRV) and DRV, LLC (DRV)); Jayco, Corp. (Jayco) (including Jayco towable, Starcraft and Highland Ridge), Keystone RV Company (Keystone) (including CrossRoads and Dutchmen) and K.Z., Inc. (KZ) (including Livin’ Lite RV, Inc. (Livin’ Lite)); motorized recreational vehicles, which consists of the operations of Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) and Thor Motor Coach, Inc. (Thor Motor Coach), and Other, which includes the operations of its subsidiary, Postle Operating, LLC (Postle).

About MarineMax

MarineMax, Inc. is a recreational boat and yacht dealer in the United States. Through 56 retail locations in Alabama, California, Connecticut, Florida, Georgia, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, and Texas, the Company sold new and used recreational boats, including pleasure and fishing boats, as of September 30, 2016. The Company also sells related marine products, including engines, trailers, parts and accessories. In addition, it provides repair, maintenance, and slip and storage services; arranges related boat financing, insurance, and extended service contracts; offers boat and yacht brokerage sales, and operates a yacht charter business. The Company primarily sells recreational boats, including pleasure boats and fishing boats. The Company offers marine engines and equipment and sells marine engines and propellers primarily to retail customers as replacements for their existing engines or propellers.

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