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

Profitability

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

Net Margins Return on Equity Return on Assets
Acushnet Holdings Corp. 5.22% 9.90% 4.56%
Black Diamond -5.07% -0.16% -0.13%

Dividends

Acushnet Holdings Corp. pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Black Diamond does not pay a dividend. Acushnet Holdings Corp. pays out 45.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Acushnet Holdings Corp. and Black Diamond, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acushnet Holdings Corp. 0 8 5 0 2.38
Black Diamond 0 1 1 0 2.50

Acushnet Holdings Corp. currently has a consensus target price of $21.38, indicating a potential upside of 22.35%. Black Diamond has a consensus target price of $8.00, indicating a potential upside of 10.34%. Given Acushnet Holdings Corp.’s higher probable upside, analysts plainly believe Acushnet Holdings Corp. is more favorable than Black Diamond.

Insider and Institutional Ownership

40.2% of Acushnet Holdings Corp. shares are held by institutional investors. Comparatively, 48.0% of Black Diamond shares are held by institutional investors. 54.0% of Acushnet Holdings Corp. shares are held by insiders. Comparatively, 33.6% of Black Diamond shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Acushnet Holdings Corp. and Black Diamond’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Acushnet Holdings Corp. $1.57 billion 0.83 $45.01 million $1.05 16.64
Black Diamond $148.19 million 1.47 -$8.97 million ($0.27) -26.85

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

Summary

Acushnet Holdings Corp. beats Black Diamond on 10 of the 14 factors compared between the two stocks.

Acushnet Holdings Corp. Company Profile

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.

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.

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