Critical Review: Mastercraft Boat (MCFT) and Its Peers

Mastercraft Boat (NASDAQ:MCFT) is one of 34 public companies in the “LEISURE&REC PRD” industry, but how does it contrast to its peers? We will compare Mastercraft Boat to related companies based on the strength of its risk, earnings, institutional ownership, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares Mastercraft Boat and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastercraft Boat	-2.46%	3.34%	2.11%
Mastercraft Boat Competitors	-41.53%	-78.87%	-10.62%

Earnings & Valuation

This table compares Mastercraft Boat and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mastercraft Boat	$366.59 million	$7.80 million	-51.54
Mastercraft Boat Competitors	$1.54 billion	-$20.69 million	-36.66

Mastercraft Boat’s peers have higher revenue, but lower earnings than Mastercraft Boat. Mastercraft Boat is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

97.6% of Mastercraft Boat shares are owned by institutional investors. Comparatively, 54.2% of shares of all “LEISURE&REC PRD” companies are owned by institutional investors. 4.0% of Mastercraft Boat shares are owned by insiders. Comparatively, 22.5% of shares of all “LEISURE&REC PRD” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Mastercraft Boat and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastercraft Boat	0	5	2	0	2.29
Mastercraft Boat Competitors	119	998	1904	58	2.62

Mastercraft Boat currently has a consensus target price of $20.00, suggesting a potential downside of 0.50%. As a group, “LEISURE&REC PRD” companies have a potential upside of 54.01%. Given Mastercraft Boat’s peers stronger consensus rating and higher possible upside, analysts clearly believe Mastercraft Boat has less favorable growth aspects than its peers.

Risk & Volatility

Mastercraft Boat has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Mastercraft Boat’s peers have a beta of 1.71, meaning that their average share price is 71% more volatile than the S&P 500.

Summary

Mastercraft Boat peers beat Mastercraft Boat on 8 of the 13 factors compared.

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.