Reviewing Callaway Golf (ELY) and Acushnet Holdings Corp. (NYSE:GOLF)
Callaway Golf (NYSE: ELY) and Acushnet Holdings Corp. (NYSE:GOLF) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitabiliy and dividends.
Insider and Institutional Ownership
86.3% of Callaway Golf shares are held by institutional investors. Comparatively, 35.2% of Acushnet Holdings Corp. shares are held by institutional investors. 2.6% of Callaway Golf shares are held by insiders. Comparatively, 54.0% of Acushnet Holdings Corp. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Callaway Golf and Acushnet Holdings Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acushnet Holdings Corp.||0||6||8||0||2.57|
Callaway Golf presently has a consensus target price of $14.55, suggesting a potential upside of 7.74%. Acushnet Holdings Corp. has a consensus target price of $21.94, suggesting a potential upside of 19.91%. Given Acushnet Holdings Corp.’s higher possible upside, analysts clearly believe Acushnet Holdings Corp. is more favorable than Callaway Golf.
This table compares Callaway Golf and Acushnet Holdings Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acushnet Holdings Corp.||N/A||6.88%||2.03%|
Earnings and Valuation
This table compares Callaway Golf and Acushnet Holdings Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Callaway Golf||$906.07 million||1.40||$61.70 million||$1.82||7.42|
|Acushnet Holdings Corp.||$1.57 billion||0.87||$191.45 million||N/A||N/A|
Acushnet Holdings Corp. has higher revenue and earnings than Callaway Golf.
Callaway Golf pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Acushnet Holdings Corp. pays an annual dividend of $0.48 per share and has a dividend yield of 2.6%. Callaway Golf pays out 2.2% of its earnings in the form of a dividend.
Acushnet Holdings Corp. beats Callaway Golf on 8 of the 14 factors compared between the two stocks.
About Callaway Golf
Callaway Golf Company designs, manufactures and sells golf clubs, golf balls, golf bags and other golf-related accessories. The Company has two segments: the golf clubs segment and golf balls segment. The golf clubs segment consists of its woods, hybrids, irons and wedges, and Odyssey putters. This segment also includes other golf-related accessories, royalties from licensing of its trademarks and service marks and sales of pre-owned golf clubs. The golf balls segment consists of Callaway Golf and Strata balls that are designed, manufactured and sold by the Company. It sells its products to retailers, directly and through its subsidiaries, and to third-party distributors. It sells pre-owned golf products through its Website, www.callawaygolfpreowned.com. In addition, it sells Callaway Golf and Odyssey products, including Toulon Design by Odyssey, directly to consumers through its Websites, www.callawaygolf.com and www.odysseygolf.com.
About Acushnet Holdings Corp.
Acushnet Holdings Corp. is engaged in the design, development, manufacture and distribution of golf products. The Company is engaged in various product categories, such as golf clubs, wedges, putters, golf gloves, golf gear and golf wear. The Company operates in four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear and FootJoy Golf Wear. The company’s Titleist golf ball segment is engaged in designing and manufacturing a golf ball. It sells Titleist Pro V1. The Company also designs, manufactures and sells other golf balls under the Titleist brand, such as NXT Tour, Velocity and DT TruSoft, as well as under the Pinnacle brand. The Company designs, assembles and sells golf clubs (drivers, fairways, hybrids and irons) under the Titleist brand, wedges under the Vokey Design brand, and putters under the Scotty Cameron brand. Titleist golf clubs, Vokey Design wedges and Scotty Cameron putters are used by the players.
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