Solo Brands (NYSE:DTC) and Callaway Golf (NYSE:ELY) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Institutional & Insider Ownership
91.4% of Callaway Golf shares are held by institutional investors. 1.2% of Callaway Golf shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings and price targets for Solo Brands and Callaway Golf, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Solo Brands presently has a consensus price target of $26.50, indicating a potential upside of 66.35%. Callaway Golf has a consensus price target of $40.18, indicating a potential upside of 55.02%. Given Solo Brands’ stronger consensus rating and higher probable upside, research analysts plainly believe Solo Brands is more favorable than Callaway Golf.
Earnings & Valuation
This table compares Solo Brands and Callaway Golf’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Callaway Golf||$1.59 billion||3.03||-$126.93 million||$2.14||12.11|
Solo Brands has higher earnings, but lower revenue than Callaway Golf.
This table compares Solo Brands and Callaway Golf’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Callaway Golf beats Solo Brands on 7 of the 9 factors compared between the two stocks.
About Solo Brands
Solo Brands Inc. is a DTC platform which offers products directly to consumers primarily online through lifestyle brands Solo Stove firepits, stoves, and accessories, Chubbies apparel, Oru Kayak, a folding portable kayak and Isle paddleboards. Solo Brands Inc. is based in SOUTHLAKE, Texas.
About Callaway Golf
Callaway Golf Co. engages in the manufacture and distribution of golf equipment and accessories. It operates through the following segments: Golf Equipment; and Apparel, Gear, and Other. The Golf Equipment segment focuses in the designs, manufactures, and selling of a full line of golf equipment. The Apparel, Gear, and Other segment involves in the development and selling of soft goods products under the Callaway, TravisMathew, OGIO, and Jack Wolfskin brands. The company was founded by Ely Reeves Callaway, Jr. in 1982 and is headquartered in Carlsbad, CA.
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