Analyzing Escalade, (ESCA) & Acushnet Holdings Corp. (GOLF)
Escalade, (NASDAQ: ESCA) and Acushnet Holdings Corp. (NYSE:GOLF) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
Escalade, pays an annual dividend of $0.46 per share and has a dividend yield of 3.8%. Acushnet Holdings Corp. pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Escalade, pays out 58.2% of its earnings in the form of a dividend. Acushnet Holdings Corp. pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Escalade, is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
26.5% of Escalade, shares are held by institutional investors. Comparatively, 38.9% of Acushnet Holdings Corp. shares are held by institutional investors. 20.0% of Escalade, shares are held by company insiders. Comparatively, 54.0% of Acushnet Holdings Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Escalade, and Acushnet Holdings Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acushnet Holdings Corp.||4.25%||10.27%||3.91%|
This is a breakdown of recent recommendations for Escalade, and Acushnet Holdings Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acushnet Holdings Corp.||0||8||6||0||2.43|
Escalade, currently has a consensus target price of $17.00, indicating a potential upside of 41.67%. Acushnet Holdings Corp. has a consensus target price of $21.61, indicating a potential upside of 32.02%. Given Escalade,’s stronger consensus rating and higher probable upside, analysts plainly believe Escalade, is more favorable than Acushnet Holdings Corp..
Earnings and Valuation
This table compares Escalade, and Acushnet Holdings Corp.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Escalade,||$167.82 million||1.03||$18.37 million||$0.79||15.19|
|Acushnet Holdings Corp.||$1.53 billion||0.80||$174.85 million||$0.53||30.89|
Acushnet Holdings Corp. has higher revenue and earnings than Escalade,. Escalade, 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.
Escalade, beats Acushnet Holdings Corp. on 9 of the 15 factors compared between the two stocks.
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.
About Acushnet Holdings Corp.
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.
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