Callaway Golf (NYSE: ELY) and Acushnet Holdings Corp. (NYSE:GOLF) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitabiliy, analyst recommendations, earnings and dividends.

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 1.32 $61.70 million $1.82 7.01
Acushnet Holdings Corp. $1.57 billion 0.83 $191.45 million N/A N/A

Acushnet Holdings Corp. has higher revenue and earnings than Callaway Golf.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Callaway Golf and Acushnet Holdings Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callaway Golf 0 4 8 0 2.67
Acushnet Holdings Corp. 0 7 7 0 2.50

Callaway Golf currently has a consensus target price of $14.55, indicating a potential upside of 14.08%. Acushnet Holdings Corp. has a consensus target price of $21.61, indicating a potential upside of 22.79%. Given Acushnet Holdings Corp.’s higher probable upside, analysts clearly believe Acushnet Holdings Corp. is more favorable than Callaway Golf.

Profitability

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
Callaway Golf 18.09% 6.60% 4.89%
Acushnet Holdings Corp. N/A 6.88% 2.03%

Dividends

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 2.7%. Callaway Golf pays out 2.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

86.0% 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Acushnet Holdings Corp. beats Callaway Golf on 7 of the 13 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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