Contrasting Callaway Golf (NYSE:ELY) and Solo Brands (NYSE:DTC)

Callaway Golf (NYSE:ELY) and Solo Brands (NYSE:DTC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Valuation and Earnings

This table compares Callaway Golf and Solo Brands’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Callaway Golf $1.59 billion 3.03 -$126.93 million $2.14 12.11
Solo Brands N/A N/A N/A N/A N/A

Solo Brands has lower revenue, but higher earnings than Callaway Golf.

Profitability

This table compares Callaway Golf and Solo Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Callaway Golf 11.00% 4.84% 2.40%
Solo Brands N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Callaway Golf and Solo Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callaway Golf 0 2 9 0 2.82
Solo Brands 0 0 7 0 3.00

Callaway Golf presently has a consensus target price of $40.18, suggesting a potential upside of 55.02%. Solo Brands has a consensus target price of $26.50, suggesting a potential upside of 66.35%. Given Solo Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Solo Brands is more favorable than Callaway Golf.

Insider & Institutional Ownership

91.4% of Callaway Golf shares are held by institutional investors. 1.2% of Callaway Golf shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Callaway Golf beats Solo Brands on 7 of the 9 factors compared between the two stocks.

Callaway Golf Company Profile

Callaway Golf Co. engages in the manufacture and distribution of golf equipment and accessories. It operates through the following segments: Golf Equipment; and Apparel, Gear, and Other. The Golf Equipment segment focuses in the designs, manufactures, and selling of a full line of golf equipment. The Apparel, Gear, and Other segment involves in the development and selling of soft goods products under the Callaway, TravisMathew, OGIO, and Jack Wolfskin brands. The company was founded by Ely Reeves Callaway, Jr. in 1982 and is headquartered in Carlsbad, CA.

Solo Brands Company Profile

Solo Brands Inc. is a DTC platform which offers products directly to consumers primarily online through lifestyle brands Solo Stove firepits, stoves, and accessories, Chubbies apparel, Oru Kayak, a folding portable kayak and Isle paddleboards. Solo Brands Inc. is based in SOUTHLAKE, Texas.

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