Head to Head Comparison: Academy Sports and Outdoors (NASDAQ:ASO) and Newton Golf (NASDAQ:NWTG)

Academy Sports and Outdoors (NASDAQ:ASO) and Newton Golf (NASDAQ:NWTG) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Volatility and Risk

Academy Sports and Outdoors has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Newton Golf has a beta of 4.45, suggesting that its stock price is 345% more volatile than the S&P 500.

Earnings and Valuation

This table compares Academy Sports and Outdoors and Newton Golf”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Academy Sports and Outdoors	$6.01 billion	0.60	$418.45 million	$5.47	9.90
Newton Golf	$6.93 million	1.05	-$11.75 million	($1.23)	-1.24

Academy Sports and Outdoors has higher revenue and earnings than Newton Golf. Newton Golf is trading at a lower price-to-earnings ratio than Academy Sports and Outdoors, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Academy Sports and Outdoors and Newton Golf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Academy Sports and Outdoors	0	10	10	0	2.50
Newton Golf	1	0	0	0	1.00

Academy Sports and Outdoors currently has a consensus target price of $59.89, indicating a potential upside of 10.56%. Given Academy Sports and Outdoors’ stronger consensus rating and higher probable upside, research analysts clearly believe Academy Sports and Outdoors is more favorable than Newton Golf.

Profitability

This table compares Academy Sports and Outdoors and Newton Golf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Academy Sports and Outdoors	6.27%	18.24%	7.18%
Newton Golf	-172.69%	-566.85%	-160.82%

Institutional & Insider Ownership

0.5% of Newton Golf shares are held by institutional investors. 3.6% of Academy Sports and Outdoors shares are held by insiders. Comparatively, 8.4% of Newton Golf shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Academy Sports and Outdoors beats Newton Golf on 10 of the 14 factors compared between the two stocks.

About Academy Sports and Outdoors

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.

About Newton Golf

Sacks Parente Golf, Inc. (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States. We anticipate expanding into golf apparel and other golf related product lines to enhance our growth. Our future expansions may include broadening our offerings through mergers, acquisitions or internal developments of product lines that are complementary to our premium brand. Product Portfolio Characteristics We design, manufacture and sell technology-forward, high-quality golf equipment, which is comprised of putting instruments, golf shafts, golf grips and related product groups. We design our golf products to fit golfers of all skill levels, amateur and professional, and our products are designed with the goal of conforming to the Rules of Golf as published by the United States Golf Association (“USGA”) and the ruling authority (“The R&A”). Our Products Our equipment includes putting instruments, golf shafts and grips. Our putting instruments are generally made of steel, aluminum, titanium alloys, carbon fiber, tungsten, and various other materials, including our patented magnesium face plate technologies. All of our products are currently sold under the SPG brand, but we intend to private label and sell certain components to interested third parties. Our shaft and putter technology has been shown by The Golf Lab, a Canadian golf research and education provider, to improve players’ ability to make putts, feel of the putter head, stroke, face angle at impact, and consistency for distance control. Our management believes that our proprietary shaft designs can enhance the performance of players’ putters as well as drivers and other golf clubs. Further, our management believes that these innovative designs, along with our proprietary manufacturing techniques, create performance improvements over traditional golf shafts. We were formed in 2018 as Sacks Parente Golf Company, LLC, a Delaware limited liability company. On March 18th, 2022, we converted into a Delaware corporation named Sacks Parente Golf, Inc. Sacks Parente Golf, Inc. 551 Calle San Pablo Camarillo, CA.