Escalade, (NASDAQ: ESCA) and Acushnet Holdings Corp. (NYSE:GOLF) 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 institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for Escalade, and Acushnet Holdings Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Escalade, 0 0 1 0 3.00
Acushnet Holdings Corp. 0 8 6 0 2.43

Escalade, currently has a consensus price target of $17.00, indicating a potential upside of 41.67%. Acushnet Holdings Corp. has a consensus price target of $21.61, indicating a potential upside of 28.41%. Given Escalade,’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Escalade, is more favorable than Acushnet Holdings Corp..

Profitability

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

Net Margins Return on Equity Return on Assets
Escalade, 6.67% 10.95% 7.32%
Acushnet Holdings Corp. 4.25% 10.27% 3.91%

Insider & Institutional Ownership

26.5% of Escalade, shares are held by institutional investors. Comparatively, 38.9% of Acushnet Holdings Corp. shares are held by institutional investors. 20.0% of Escalade, shares are held by insiders. Comparatively, 54.0% of Acushnet Holdings Corp. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Escalade, pays an annual dividend of $0.46 per share and has a dividend yield of 3.8%. Acushnet Holdings Corp. pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Escalade, pays out 58.2% of its earnings in the form of a dividend. 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. Escalade, is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Escalade, and Acushnet Holdings Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Escalade, $167.82 million 1.03 $18.37 million $0.79 15.19
Acushnet Holdings Corp. $1.53 billion 0.82 $174.85 million $0.53 31.76

Acushnet Holdings Corp. has higher revenue and earnings than Escalade,. Escalade, 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.

Summary

Escalade, beats Acushnet Holdings Corp. on 9 of the 15 factors compared between the two stocks.

About Escalade,

Escalade, Incorporated (Escalade) is a manufacturer and distributor of sporting goods through its subsidiary Escalade Sports. The Company operates in Sporting Goods (Escalade Sports) segment. Escalade Sports manufactures, imports and distributes sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products through sporting goods retailers, specialty dealers, key online retailers, traditional department stores and mass merchants. Escalade offers table tennis tables, residential in-ground basketball goals and in archery bows. Its brands, owned or distributed include Bear Archery, Trophy Ridge, Whisker Biscuit, Cajun Bowfishing, STIGA, Ping-Pong, Prince, Goalrilla, Goaliath, Silverback, Hoopstar, Goalsetter, Woodplay, Childlife, The STEP, USWeight, Atomic, Redline, Mizerak, Minnesota Fats, Accudart, Arachnid, Nodor, Pickleball Now, Onix and Viva Sol. Escalade Sports manufactures in the United States and Mexico, and imports product from Asia.

About Acushnet Holdings Corp.

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.

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