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 valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

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.



Institutional & Insider Ownership

95.4% of MCBC shares are held by institutional investors. Comparatively, 84.2% of Huntington Ingalls Industries shares are held by institutional investors. 2.6% of MCBC shares are held by company insiders. Comparatively, 2.2% of Huntington Ingalls Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

MCBC has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Huntington Ingalls Industries has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

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%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MCBC $228.63 million 2.06 $19.57 million $1.26 19.99
Huntington Ingalls Industries $7.44 billion 1.55 $479.00 million $12.14 21.26

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 breakdown of current ratings and recommmendations for MCBC and Huntington Ingalls Industries, as provided by MarketBeat.com.

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, suggesting a potential upside of 11.49%. Huntington Ingalls Industries has a consensus target price of $266.75, suggesting a potential upside of 3.36%. Given MCBC’s stronger consensus rating and higher possible upside, research analysts clearly 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. (MCBC) is a holding company. The Company is a designer and manufacturer of inboard tournament ski boats and V-drive runabouts under the MasterCraft brand. The Company operates through two segments: MasterCraft and Hydra-Sports. The MasterCraft product brand consists of recreational performance boats primarily used for water skiing, wakeboarding and wake surfing, and general recreational boating. The Company distributes the MasterCraft product brand through its dealer network. The Company manufactures a range of Hydra-Sports recreational fishing boats. It also leases a parts warehouse in the United Kingdom to expedite service, primarily to dealers and customers in the European Union. Its MasterCraft-branded portfolio includes Star Series, XSeries and NXT boats. In addition, MCBC offers various accessories, including trailers and aftermarket parts. The Company operates primarily through its subsidiaries, MasterCraft Boat Company, LLC and MCBC Hydra Boats, LLC.

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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