Head-To-Head Contrast: Mastercraft Boat (NASDAQ:MCFT) vs. JAKKS Pacific (NASDAQ:JAKK)
by Mitch Edgeman · The Markets DailyMastercraft Boat (NASDAQ:MCFT – Get Free Report) and JAKKS Pacific (NASDAQ:JAKK – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.
Volatility & Risk
Mastercraft Boat has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, JAKKS Pacific has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Valuation & Earnings
This table compares Mastercraft Boat and JAKKS Pacific”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mastercraft Boat | $348.90 million | 1.37 | -$1.66 million | ($0.02) | -985.00 |
| JAKKS Pacific | $584.24 million | 0.60 | $9.87 million | $2.13 | 14.33 |
JAKKS Pacific has higher revenue and earnings than Mastercraft Boat. Mastercraft Boat is trading at a lower price-to-earnings ratio than JAKKS Pacific, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
97.6% of Mastercraft Boat shares are held by institutional investors. Comparatively, 44.4% of JAKKS Pacific shares are held by institutional investors. 2.5% of Mastercraft Boat shares are held by insiders. Comparatively, 4.2% of JAKKS Pacific shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Mastercraft Boat and JAKKS Pacific’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mastercraft Boat | -0.48% | 11.08% | 8.08% |
| JAKKS Pacific | 4.17% | 8.43% | 4.83% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Mastercraft Boat and JAKKS Pacific, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mastercraft Boat | 2 | 4 | 0 | 0 | 1.67 |
| JAKKS Pacific | 0 | 2 | 1 | 0 | 2.33 |
Mastercraft Boat presently has a consensus price target of $22.75, suggesting a potential upside of 15.48%. JAKKS Pacific has a consensus price target of $57.00, suggesting a potential upside of 86.76%. Given JAKKS Pacific’s stronger consensus rating and higher probable upside, analysts plainly believe JAKKS Pacific is more favorable than Mastercraft Boat.
Summary
JAKKS Pacific beats Mastercraft Boat on 10 of the 14 factors compared between the two stocks.
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.
About JAKKS Pacific
JAKKS Pacific, Inc. designs, produces, markets, sells, and distributes toys and related products, electronic products, and other consumer products worldwide. It operates through two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; junior sports toys, including hyper-charged balls, sport sets, and toy hoops; and board games. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was incorporated in 1995 and is headquartered in Santa Monica, California.