Comparing Malibu Boats (MBUU) and RISE Education Cayman (REDU)

Malibu Boats (NASDAQ: MBUU) and RISE Education Cayman (NASDAQ:REDU) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

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This table compares Malibu Boats and RISE Education Cayman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Malibu Boats 4.64% 44.97% 12.49%
RISE Education Cayman N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations for Malibu Boats and RISE Education Cayman, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Malibu Boats 0 2 4 1 2.86
RISE Education Cayman 0 0 1 0 3.00

Malibu Boats presently has a consensus target price of $34.75, suggesting a potential upside of 1.22%. RISE Education Cayman has a consensus target price of $15.50, suggesting a potential downside of 8.72%. Given Malibu Boats’ higher probable upside, research analysts clearly believe Malibu Boats is more favorable than RISE Education Cayman.

Earnings & Valuation

This table compares Malibu Boats and RISE Education Cayman’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Malibu Boats $281.94 million 2.50 $28.35 million $0.98 35.03
RISE Education Cayman $148.98 million 6.27 -$7.37 million N/A N/A

Malibu Boats has higher revenue and earnings than RISE Education Cayman.

Institutional and Insider Ownership

10.8% of RISE Education Cayman shares are held by institutional investors. 3.5% of Malibu Boats shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Malibu Boats beats RISE Education Cayman on 9 of the 12 factors compared between the two stocks.

About Malibu Boats

Malibu Boats, Inc. is a designer, manufacturer and marketer of performance sport boats. The Company’s segments include the U.S. and Australia. Each segment is engaged in the manufacturing, distribution, marketing and sale of performance sport boats. Its U.S. segment serves markets in North America, South America, Europe and Asia. Its Australia segment serves the Australian and New Zealand markets. The Company’s boats are used for water sports, including water skiing, wakeboarding and wake surfing, as well as general recreational boating. The Company sells its boats under Malibu and Axis Wake Research (Axis) brand names. The Company’s boats are constructed of fiberglass, equipped with inboard propulsion systems and available in a range of sizes and hull designs. The Company also offers various accessories and aftermarket parts. The Company’s boat models include Malibu M Series, Malibu Wakesetter, Malibu Response and Axis.

About RISE Education Cayman

RISE Education Cayman Ltd is a holding company. The Company, through its subsidiaries, offers after-school English teaching and tutoring services to students aged three to 18. It operates in China’s junior English Language Training (ELT) market. Its offers three flagship courses, including Rise Start, Rise On and Rise Up, that are designed for students aged three to six, seven to twelve and 13 to 18, respectively. As of June 30, 2017, the Company had a network of 246 learning centers across 80 cities in China, among which 56 were self-owned centers and 190 centers were franchised learning centers. Its suite of products comprises both online and offline coursework. Its also offers a series of complementary products to students from both self-owned learning centers and franchised learning centers, including online products Can-Talk and Rise Library Online, and offline products Rise Camp, Rise Workshop and Rise Overseas Study Tour.

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