Reviewing PLBY Group (NASDAQ:PLBY) & Newton Golf (NASDAQ:NWTG)

PLBY Group (NASDAQ:PLBY) and Newton Golf (NASDAQ:NWTG) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Profitability

This table compares PLBY Group and Newton Golf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PLBY Group	-24.10%	N/A	-8.22%
Newton Golf	-172.69%	-566.85%	-160.82%

Insider & Institutional Ownership

32.5% of PLBY Group shares are held by institutional investors. Comparatively, 0.5% of Newton Golf shares are held by institutional investors. 38.3% of PLBY Group 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, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares PLBY Group and Newton Golf”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLBY Group	$116.14 million	1.70	-$79.40 million	($0.33)	-5.56
Newton Golf	$3.44 million	2.24	-$11.75 million	($1.23)	-1.32

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for PLBY Group and Newton Golf, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLBY Group	1	0	1	1	2.67
Newton Golf	1	0	0	0	1.00

PLBY Group currently has a consensus price target of $3.00, suggesting a potential upside of 63.49%. Given PLBY Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe PLBY Group is more favorable than Newton Golf.

Risk & Volatility

PLBY Group has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500. Comparatively, Newton Golf has a beta of 4.65, meaning that its stock price is 365% more volatile than the S&P 500.

Summary

PLBY Group beats Newton Golf on 11 of the 15 factors compared between the two stocks.

About PLBY Group

PLBY Group, Inc. operates as a pleasure and leisure company in the United States, Australia, China, the United Kingdom, and internationally. It operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. The company offers sexual wellness products, such as lingerie, bedroom accessories, intimacy products, and other adult products; style and apparel products for men and women; digital entertainment and lifestyle products; and beauty and grooming products for men and women, such as skincare, haircare, bath and body, grooming, cosmetics, and fragrance. It also owns and operates digital commerce retail platforms, such as playboy.com, honeybirdette.com, yandy.com, and loversstores.com; and Honey Birdette and Lovers retail stores. In addition, the company licenses Playboy name, Rabbit Head Design, and other trademarks and related properties; and programming content to cable television operators and direct-to-home satellite television operators. Further, the company business covers the subscription sale of playboyplus.com and playboy.tv, which are online content platforms. It offers its products under its flagship brand Playboy. PLBY Group, Inc. is headquartered in Los Angeles, California.

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.