Callaway Golf (NYSE:ELY) and Spin Master (OTCMKTS:SNMSF) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Valuation and Earnings

This table compares Callaway Golf and Spin Master’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Callaway Golf $1.24 billion 1.28 $104.74 million $1.07 15.79
Spin Master N/A N/A N/A N/A N/A

Callaway Golf has higher revenue and earnings than Spin Master.

Institutional and Insider Ownership

90.6% of Callaway Golf shares are owned by institutional investors. 2.0% of Callaway Golf shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Callaway Golf and Spin Master, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callaway Golf 0 6 7 0 2.54
Spin Master 0 0 2 0 3.00

Callaway Golf presently has a consensus target price of $22.58, indicating a potential upside of 33.71%. Spin Master has a consensus target price of $25.85, indicating a potential downside of 8.05%. Given Callaway Golf’s higher possible upside, equities research analysts clearly believe Callaway Golf is more favorable than Spin Master.

Dividends

Callaway Golf pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Spin Master does not pay a dividend. Callaway Golf pays out 3.7% of its earnings in the form of a dividend.

Profitability

This table compares Callaway Golf and Spin Master’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Callaway Golf 8.43% 14.01% 9.75%
Spin Master N/A N/A N/A

Summary

Callaway Golf beats Spin Master on 9 of the 11 factors compared between the two stocks.

About Callaway Golf

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories. The company operates through three segments: Golf Clubs; Golf Balls; and Gear, Accessories and Other. The Golf Clubs segment provides golf drivers and fairway woods, hybrids, irons and wedges, putters, packaged sets, and pre-owned golf clubs. The Golf Balls segment designs, manufactures, and sells golf balls. The Gear, Accessories and Other segment offers golf apparel and footwear, headwear, and other lifestyle and golf-related apparel products, as well as golf bags, golf gloves, travel gears, gears, personal storage gears, and accessories. The company sells its products through golf retailers, sporting goods retailers, mass merchants, Internet retailers, department stores, field representatives, and in-house sales representatives, as well as to third-party distributors in the United States and approximately 100 countries. Callaway Golf Company sells its products under the Callaway Golf, Odyssey, Strata, OGIO, and TravisMathew brand names. It also sells pre-owned golf products through its Website, callawaygolfpreowned.com; and Callaway Golf and Odyssey products through its Websites callawaygolf.com, odysseygolf.com, ogio.com, and travismathew.com. The company was founded in 1982 and is based in Carlsbad, California.

About Spin Master

Spin Master Corp., a children's entertainment company, creates, designs, manufactures, and markets various toys, games, products, and entertainment properties in North America, Europe, and internationally. It operates through five segments: Activities, Games & Puzzles and Fun Furniture; Remote Control and Interactive Characters; Boys Action and High-Tech Construction; Pre-School and Girls; and Outdoor. The company sells toys and related products to retail customers and distributors, as well as online. The company was formerly known as SML Investments Inc. Spin Master Corp. was founded in 1994 and is headquartered in Toronto, Canada.

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