Contrasting Sportradar Group (NASDAQ:SRAD) and Topgolf Callaway Brands (NYSE:MODG)

Topgolf Callaway Brands (NYSE:MODG) and Sportradar Group (NASDAQ:SRAD) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Institutional and Insider Ownership

84.7% of Topgolf Callaway Brands shares are held by institutional investors. 2.4% of Topgolf Callaway Brands shares are held by insiders. Comparatively, 85.0% of Sportradar Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Topgolf Callaway Brands and Sportradar Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Topgolf Callaway Brands	1	5	4	1	2.45
Sportradar Group	1	3	14	2	2.85

Topgolf Callaway Brands presently has a consensus price target of $11.17, indicating a potential downside of 6.08%. Sportradar Group has a consensus price target of $31.56, indicating a potential upside of 37.68%. Given Sportradar Group’s stronger consensus rating and higher possible upside, analysts clearly believe Sportradar Group is more favorable than Topgolf Callaway Brands.

Profitability

This table compares Topgolf Callaway Brands and Sportradar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Topgolf Callaway Brands	-37.06%	-0.13%	-0.04%
Sportradar Group	7.84%	9.97%	3.98%

Earnings and Valuation

This table compares Topgolf Callaway Brands and Sportradar Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Topgolf Callaway Brands	$4.24 billion	0.52	-$1.45 billion	($8.19)	-1.45
Sportradar Group	$1.20 billion	5.73	$36.95 million	$0.32	71.63

Sportradar Group has lower revenue, but higher earnings than Topgolf Callaway Brands. Topgolf Callaway Brands is trading at a lower price-to-earnings ratio than Sportradar Group, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Topgolf Callaway Brands has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Sportradar Group has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Summary

Sportradar Group beats Topgolf Callaway Brands on 13 of the 15 factors compared between the two stocks.

About Topgolf Callaway Brands

Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game. The Golf Equipment segment provides drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs under the Callaway and Odyssey brands, as well as golf balls under the Callaway Golf and Strata brands. The Active Lifestyle segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; golf and lifestyle apparel, hats, luggage, and accessories under the TravisMathew brand; and footwear, belts, hats, facemasks, sunglasses, socks, and underwear under the Cuater by TravisMathew brand. This segment also provides storage and travel gear for sport and personal use, such as backpacks; travel, duffel, and golf bags; and storage gear accessories, as well as outerwear, headwear, and accessories under the OGIO brand. In addition, it offers outdoor apparel comprising jackets, trousers, dresses, skirts, and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories under the Jack Wolfskin brand. The company sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as directly to consumers through its retail stores and websites. The company was formerly known as Callaway Golf Company and changed its name to Topgolf Callaway Brands Corp. in September 2022. Topgolf Callaway Brands Corp. was incorporated in 1982 and is headquartered in Carlsbad, California.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.