Topgolf Callaway Brands (NYSE:CALY – Get Free Report) and Sturm, Ruger & Company, Inc. (NYSE:RGR – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Earnings and Valuation
This table compares Topgolf Callaway Brands and Sturm, Ruger & Company, Inc.”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Topgolf Callaway Brands | $2.06 billion | 1.34 | -$409.30 million | $0.14 | 109.96 |
| Sturm, Ruger & Company, Inc. | $546.06 million | 1.14 | -$4.39 million | ($0.73) | -53.39 |
Volatility & Risk
Topgolf Callaway Brands has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
Profitability
This table compares Topgolf Callaway Brands and Sturm, Ruger & Company, Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Topgolf Callaway Brands | 1.05% | 4.44% | 1.59% |
| Sturm, Ruger & Company, Inc. | -2.18% | 5.96% | 4.89% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Topgolf Callaway Brands and Sturm, Ruger & Company, Inc., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Topgolf Callaway Brands | 0 | 4 | 0 | 0 | 2.00 |
| Sturm, Ruger & Company, Inc. | 1 | 1 | 1 | 0 | 2.00 |
Topgolf Callaway Brands currently has a consensus target price of $16.00, indicating a potential upside of 3.93%. Sturm, Ruger & Company, Inc. has a consensus target price of $46.00, indicating a potential upside of 18.03%. Given Sturm, Ruger & Company, Inc.’s higher possible upside, analysts plainly believe Sturm, Ruger & Company, Inc. is more favorable than Topgolf Callaway Brands.
Institutional and Insider Ownership
84.7% of Topgolf Callaway Brands shares are held by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. 2.9% of Topgolf Callaway Brands shares are held by company insiders. Comparatively, 4.6% of Sturm, Ruger & Company, Inc. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Topgolf Callaway Brands beats Sturm, Ruger & Company, Inc. on 7 of the 13 factors compared between the two stocks.
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.
About Sturm, Ruger & Company, Inc.
Sturm, Ruger & Co., Inc. engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates through the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors. The Castings segment offers steel investment castings and metal injection molding parts. The company was founded by William B. Ruger in 1949 and is headquartered in Southport, CT.
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