Escalade, (NASDAQ: ESCA) and Black Diamond (NASDAQ:CLAR) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Dividends

Escalade, pays an annual dividend of $0.46 per share and has a dividend yield of 3.4%. Black Diamond does not pay a dividend. Escalade, pays out 64.8% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Escalade, and Black Diamond’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Escalade, $167.65 million 1.17 $11.49 million $0.71 19.16
Black Diamond $148.19 million 1.55 -$8.97 million ($0.27) -28.33

Escalade, has higher revenue and earnings than Black Diamond. Black Diamond is trading at a lower price-to-earnings ratio than Escalade,, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Escalade, has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, Black Diamond has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Escalade, and Black Diamond, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Escalade, 0 0 2 0 3.00
Black Diamond 0 1 1 0 2.50

Escalade, currently has a consensus price target of $16.50, suggesting a potential upside of 21.32%. Black Diamond has a consensus price target of $8.00, suggesting a potential upside of 4.58%. Given Escalade,’s stronger consensus rating and higher probable upside, analysts clearly believe Escalade, is more favorable than Black Diamond.

Profitability

This table compares Escalade, and Black Diamond’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Escalade, 5.89% 9.72% 6.66%
Black Diamond -5.07% -0.16% -0.13%

Insider & Institutional Ownership

26.6% of Escalade, shares are owned by institutional investors. Comparatively, 49.2% of Black Diamond shares are owned by institutional investors. 20.0% of Escalade, shares are owned by insiders. Comparatively, 46.8% of Black Diamond shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Escalade, beats Black Diamond on 10 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 Black Diamond

Clarus Corporation, formerly Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

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