Reviewing MCBC (MCFT) & Huntington Ingalls Industries (HII)

MCBC (NASDAQ: MCFT) and Huntington Ingalls Industries (NYSE:HII) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Profitability

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This table compares MCBC and Huntington Ingalls Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MCBC 9.07% 149.34% 21.40%
Huntington Ingalls Industries 6.44% 31.01% 8.39%

Volatility & Risk

MCBC has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Huntington Ingalls Industries has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Dividends

Huntington Ingalls Industries pays an annual dividend of $2.88 per share and has a dividend yield of 1.1%. MCBC does not pay a dividend. Huntington Ingalls Industries pays out 23.7% of its earnings in the form of a dividend. Huntington Ingalls Industries has raised its dividend for 5 consecutive years.

Insider and Institutional Ownership

95.4% of MCBC shares are owned by institutional investors. Comparatively, 84.3% of Huntington Ingalls Industries shares are owned by institutional investors. 2.6% of MCBC shares are owned by insiders. Comparatively, 2.3% of Huntington Ingalls Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares MCBC and Huntington Ingalls Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MCBC $228.63 million 2.12 $19.57 million $1.26 20.60
Huntington Ingalls Industries $7.44 billion 1.57 $479.00 million $12.14 21.55

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for MCBC and Huntington Ingalls Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MCBC 0 0 4 0 3.00
Huntington Ingalls Industries 1 2 5 0 2.50

MCBC presently has a consensus target price of $28.08, indicating a potential upside of 8.18%. Huntington Ingalls Industries has a consensus target price of $277.63, indicating a potential upside of 6.14%. Given MCBC’s stronger consensus rating and higher possible upside, research analysts plainly believe MCBC is more favorable than Huntington Ingalls Industries.

Summary

MCBC beats Huntington Ingalls Industries on 10 of the 17 factors compared between the two stocks.

MCBC Company Profile

MCBC Holdings, Inc., through its subsidiaries, innovates, designs, manufactures, and markets recreational sport boats in North America and internationally. The company offers recreational performance sport boats, which are primarily used for water skiing, wakeboarding, and wake surfing, as well as general recreational boating. It distributes its recreational performance sport boats under the MasterCraft brand name. The company also offers recreational fishing boats under the Hydra-Sports brand name; and various accessories, such as trailers and aftermarket parts. It sells its products through a network of independent dealers. MCBC Holdings, Inc. was founded in 1968 and is based in Vonore, Tennessee.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries, Inc. engages in the designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships that include deck amphibious ships and transport dock ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in service U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, it provides fleet support services comprising ship technical and waterfront; naval architecture and marine engineering; integrated logistics support; technical documentation development; warehousing, asset management, and material readiness; operational and maintenance training development and delivery; software design and development; IT infrastructure support, and data delivery and management; and cyber security and information assurance services, as well as undersea vehicle and specialized craft development and prototyping services. Additionally, the company offers integrated missions solutions services; nuclear and environmental services; engineering, procurement, and construction management services to the oil and gas industry; nuclear management and operations, and environmental management services to the Department of Energy, Department of Defense, local governments, and the private sector; and unmanned underwater vehicles designing and building services. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

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