Financial Analysis: OneWater Marine (NASDAQ:ONEW) and Acushnet (NYSE:GOLF)

Acushnet (NYSE:GOLF) and OneWater Marine (NASDAQ:ONEW) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Earnings and Valuation

This table compares Acushnet and OneWater Marine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acushnet	$2.46 billion	2.37	$214.30 million	$3.66	27.15
OneWater Marine	$1.87 billion	0.12	-$114.58 million	($6.74)	-2.07

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

Institutional and Insider Ownership

53.1% of Acushnet shares are owned by institutional investors. Comparatively, 94.3% of OneWater Marine shares are owned by institutional investors. 53.6% of Acushnet shares are owned by insiders. Comparatively, 19.5% of OneWater Marine shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Acushnet and OneWater Marine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acushnet	0	6	1	1	2.38
OneWater Marine	1	3	2	0	2.17

Acushnet currently has a consensus price target of $84.33, indicating a potential downside of 15.12%. OneWater Marine has a consensus price target of $17.00, indicating a potential upside of 21.86%. Given OneWater Marine’s higher possible upside, analysts clearly believe OneWater Marine is more favorable than Acushnet.

Risk and Volatility

Acushnet has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Profitability

This table compares Acushnet and OneWater Marine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acushnet	8.80%	27.50%	9.53%
OneWater Marine	-5.88%	4.09%	0.94%

Summary

Acushnet beats OneWater Marine on 11 of the 15 factors compared between the two stocks.

About Acushnet

Acushnet Holdings Corp. designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally. The company operates through four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear, and FootJoy Golf Wear. It offers golf balls under the Titleist brand; golf clubs, such as drivers, fairways, hybrids, and irons under the Titleist brand; wedges under the Vokey Design brand; and putters under the Scotty Cameron brand. The company also provides golf bags, headwear, golf gloves, travel products, and other golf accessories. In addition, it offers golf shoes, gloves, golf outerwear, and men’s and women’s golf apparel under the FootJoy brand; and ski, golf, and lifestyle apparel under the KJUS brand name. It sells its products through on-course golf shops and golf specialty retailers, as well as through representatives, other retailers, and online. The company was formerly known as Alexandria Holdings Corp. and changed its name to Acushnet Holdings Corp. in March 2016. Acushnet Holdings Corp. was founded in 1910 and is headquartered in Fairhaven, Massachusetts.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.