Critical Analysis: Polaris (NYSE:PII) vs. TruGolf (NASDAQ:TRUG)

Polaris (NYSE:PII – Get Free Report) and TruGolf (NASDAQ:TRUG – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Earnings and Valuation

This table compares Polaris and TruGolf”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Polaris $7.15 billion 0.44 -$465.50 million ($4.63) -11.92
TruGolf $18.88 million 0.01 -$15.23 million ($108.20) -0.01

TruGolf has lower revenue, but higher earnings than Polaris. Polaris is trading at a lower price-to-earnings ratio than TruGolf, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

88.1% of Polaris shares are held by institutional investors. Comparatively, 3.2% of TruGolf shares are held by institutional investors. 2.4% of Polaris shares are held by insiders. Comparatively, 5.8% of TruGolf shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Polaris and TruGolf’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Polaris -3.50% 16.77% 2.91%
TruGolf -55.27% -132.15% -24.75%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Polaris and TruGolf, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polaris 1 12 1 0 2.00
TruGolf 1 0 0 0 1.00

Polaris presently has a consensus target price of $63.00, suggesting a potential upside of 14.15%. Given Polaris’ stronger consensus rating and higher possible upside, equities analysts plainly believe Polaris is more favorable than TruGolf.

Volatility & Risk

Polaris has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, TruGolf has a beta of -1.08, indicating that its stock price is 208% less volatile than the S&P 500.

Summary

Polaris beats TruGolf on 11 of the 14 factors compared between the two stocks.

About Polaris

(Get Free Report)

Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.

About TruGolf

(Get Free Report)

TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.

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