Reviewing American Outdoor Brands (NASDAQ:AOUT) & Topgolf Callaway Brands (NYSE:CALY)

American Outdoor Brands (NASDAQ:AOUT) and Topgolf Callaway Brands (NYSE:CALY) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for American Outdoor Brands and Topgolf Callaway Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Outdoor Brands	2	0	2	0	2.00
Topgolf Callaway Brands	1	2	0	0	1.67

American Outdoor Brands presently has a consensus target price of $12.50, suggesting a potential upside of 33.83%. Topgolf Callaway Brands has a consensus target price of $15.00, suggesting a potential upside of 4.98%. Given American Outdoor Brands’ stronger consensus rating and higher possible upside, equities analysts clearly believe American Outdoor Brands is more favorable than Topgolf Callaway Brands.

Earnings & Valuation

This table compares American Outdoor Brands and Topgolf Callaway Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Outdoor Brands	$222.32 million	0.53	-$80,000.00	($0.78)	-11.97
Topgolf Callaway Brands	$2.06 billion	1.26	-$409.30 million	($0.32)	-44.65

American Outdoor Brands has higher earnings, but lower revenue than Topgolf Callaway Brands. Topgolf Callaway Brands is trading at a lower price-to-earnings ratio than American Outdoor Brands, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

49.9% of American Outdoor Brands shares are held by institutional investors. Comparatively, 84.7% of Topgolf Callaway Brands shares are held by institutional investors. 5.3% of American Outdoor Brands shares are held by insiders. Comparatively, 2.5% of Topgolf Callaway Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares American Outdoor Brands and Topgolf Callaway Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Outdoor Brands	-4.78%	0.62%	0.44%
Topgolf Callaway Brands	-1.66%	0.43%	0.14%

Volatility and Risk

American Outdoor Brands has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Topgolf Callaway Brands has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Summary

American Outdoor Brands beats Topgolf Callaway Brands on 8 of the 14 factors compared between the two stocks.

About American Outdoor Brands

American Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. In addition, it offers electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. The company sells its products through e-commerce and traditional distribution channels under the Adventurer, Harvester, Marksman, and Defender brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.

About Topgolf Callaway Brands

Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game. The Golf Equipment segment provides drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs under the Callaway and Odyssey brands, as well as golf balls under the Callaway Golf and Strata brands. The Active Lifestyle segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; golf and lifestyle apparel, hats, luggage, and accessories under the TravisMathew brand; and footwear, belts, hats, facemasks, sunglasses, socks, and underwear under the Cuater by TravisMathew brand. This segment also provides storage and travel gear for sport and personal use, such as backpacks; travel, duffel, and golf bags; and storage gear accessories, as well as outerwear, headwear, and accessories under the OGIO brand. In addition, it offers outdoor apparel comprising jackets, trousers, dresses, skirts, and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories under the Jack Wolfskin brand. The company sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as directly to consumers through its retail stores and websites. The company was formerly known as Callaway Golf Company and changed its name to Topgolf Callaway Brands Corp. in September 2022. Topgolf Callaway Brands Corp. was incorporated in 1982 and is headquartered in Carlsbad, California.