Black Diamond (NASDAQ: CLAR) and Escalade, (NASDAQ:ESCA) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Institutional and Insider Ownership

47.7% of Black Diamond shares are held by institutional investors. Comparatively, 26.5% of Escalade, shares are held by institutional investors. 33.6% of Black Diamond shares are held by company insiders. Comparatively, 20.0% of Escalade, 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.

Dividends

Escalade, pays an annual dividend of $0.46 per share and has a dividend yield of 3.4%. Black Diamond does not pay a dividend. Escalade, pays out 58.2% of its earnings in the form of a dividend.

Profitability

This table compares Black Diamond and Escalade,’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Diamond -4.51% -0.72% -0.57%
Escalade, 6.67% 10.95% 7.32%

Valuation and Earnings

This table compares Black Diamond and Escalade,’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Black Diamond $153.08 million 1.43 -$515,999.00 ($0.23) -31.74
Escalade, $167.82 million 1.16 $18.37 million $0.79 17.15

Escalade, has higher revenue and earnings than Black Diamond. Black Diamond is trading at a lower price-to-earnings ratio than Escalade,, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Black Diamond has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Escalade, has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Black Diamond and Escalade,, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Diamond 0 1 0 0 2.00
Escalade, 0 0 2 0 3.00

Black Diamond currently has a consensus price target of $7.00, suggesting a potential downside of 4.11%. Escalade, has a consensus price target of $16.50, suggesting a potential upside of 21.77%. Given Escalade,’s stronger consensus rating and higher probable upside, analysts clearly believe Escalade, is more favorable than Black Diamond.

Summary

Escalade, beats Black Diamond on 10 of the 15 factors compared between the two stocks.

Black Diamond Company Profile

Clarus Corporation, formerly Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

Escalade, Company Profile

Escalade, Incorporated (Escalade) is a manufacturer and distributor of sporting goods through its subsidiary Escalade Sports. The Company operates in Sporting Goods (Escalade Sports) segment. Escalade Sports manufactures, imports and distributes sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products through sporting goods retailers, specialty dealers, key online retailers, traditional department stores and mass merchants. Escalade offers table tennis tables, residential in-ground basketball goals and in archery bows. Its brands, owned or distributed include Bear Archery, Trophy Ridge, Whisker Biscuit, Cajun Bowfishing, STIGA, Ping-Pong, Prince, Goalrilla, Goaliath, Silverback, Hoopstar, Goalsetter, Woodplay, Childlife, The STEP, USWeight, Atomic, Redline, Mizerak, Minnesota Fats, Accudart, Arachnid, Nodor, Pickleball Now, Onix and Viva Sol. Escalade Sports manufactures in the United States and Mexico, and imports product from Asia.

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