Acushnet Holdings Corp. (NYSE: GOLF) and Johnson Outdoors (NASDAQ:JOUT) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Valuation and Earnings

This table compares Acushnet Holdings Corp. and Johnson Outdoors’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Acushnet Holdings Corp. $1.53 billion 0.82 $174.85 million $0.53 31.76
Johnson Outdoors $473.75 million 1.31 $51.51 million $3.23 19.59

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

Analyst Ratings

This is a breakdown of current recommendations for Acushnet Holdings Corp. and Johnson Outdoors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acushnet Holdings Corp. 0 8 6 0 2.43
Johnson Outdoors 0 0 2 0 3.00

Acushnet Holdings Corp. currently has a consensus target price of $21.61, indicating a potential upside of 28.41%. Johnson Outdoors has a consensus target price of $46.50, indicating a potential downside of 26.52%. Given Acushnet Holdings Corp.’s higher probable upside, analysts clearly believe Acushnet Holdings Corp. is more favorable than Johnson Outdoors.

Dividends

Acushnet Holdings Corp. pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Johnson Outdoors pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Acushnet Holdings Corp. pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Johnson Outdoors pays out 11.1% of its earnings in the form of a dividend.

Insider and Institutional Ownership

38.9% of Acushnet Holdings Corp. shares are held by institutional investors. Comparatively, 59.5% of Johnson Outdoors shares are held by institutional investors. 54.0% of Acushnet Holdings Corp. shares are held by company insiders. Comparatively, 28.4% of Johnson Outdoors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Acushnet Holdings Corp. and Johnson Outdoors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acushnet Holdings Corp. 4.25% 10.27% 3.91%
Johnson Outdoors 6.85% 12.90% 8.53%

Summary

Johnson Outdoors beats Acushnet Holdings Corp. on 8 of the 15 factors compared between the two stocks.

Acushnet Holdings Corp. Company Profile

Acushnet Holdings Corp. is engaged in the design, development, manufacture and distribution of golf products. The Company is engaged in various product categories, such as golf clubs, wedges, putters, golf gloves, golf gear and golf wear. The Company operates in four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear and FootJoy Golf Wear. The company’s Titleist golf ball segment is engaged in designing and manufacturing a golf ball. It sells Titleist Pro V1. The Company also designs, manufactures and sells other golf balls under the Titleist brand, such as NXT Tour, Velocity and DT TruSoft, as well as under the Pinnacle brand. The Company designs, assembles and sells golf clubs (drivers, fairways, hybrids and irons) under the Titleist brand, wedges under the Vokey Design brand, and putters under the Scotty Cameron brand. Titleist golf clubs, Vokey Design wedges and Scotty Cameron putters are used by the players.

Johnson Outdoors Company Profile

Johnson Outdoors Inc. is a manufacturer and marketer of branded seasonal, outdoor recreation products. The Company operates through four segments: Marine Electronics, Outdoor Equipment, Watercraft and Diving. Its Marine Electronics segment’s brands are Minn Kota, Humminbird and Cannon. Its Outdoor Equipment segment’s brands are Eureka!, Jetboil and Silva. Its Watercraft segment designs and markets Necky sea touring kayaks; sit on top Ocean Kayaks, and Old Town canoes and kayaks for family recreation, touring, angling and tripping. The Company manufactures and markets underwater diving products for recreational divers, which it sells and distributes under the SCUBAPRO brand name. It markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels and accessories. The Company’s products are used for fishing from a boat, diving, paddling, hiking and camping.

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