Critical Review: Newton Golf (NWTG) vs. Its Peers

Valuation & Earnings

This table compares Newton Golf and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Newton Golf	$3.44 million	-$11.75 million	-0.01
Newton Golf Competitors	$1.54 billion	-$20.22 million	-1.54

Newton Golf’s competitors have higher revenue, but lower earnings than Newton Golf. Newton Golf is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Newton Golf and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newton Golf	-257.47%	-609.35%	-173.28%
Newton Golf Competitors	-41.49%	-78.80%	-10.58%

Risk & Volatility

Newton Golf has a beta of 4.66, meaning that its stock price is 366% more volatile than the S&P 500. Comparatively, Newton Golf’s competitors have a beta of 1.27, meaning that their average stock price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

0.5% of Newton Golf shares are owned by institutional investors. Comparatively, 54.2% of shares of all “LEISURE&REC PRD” companies are owned by institutional investors. 8.4% of Newton Golf shares are owned by insiders. Comparatively, 22.5% of shares of all “LEISURE&REC PRD” companies are owned 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.

Summary

Newton Golf competitors beat Newton Golf on 6 of the 9 factors compared.

Newton Golf Company Profile

Sacks Parente Golf, Inc. (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States. We anticipate expanding into golf apparel and other golf related product lines to enhance our growth. Our future expansions may include broadening our offerings through mergers, acquisitions or internal developments of product lines that are complementary to our premium brand. Product Portfolio Characteristics We design, manufacture and sell technology-forward, high-quality golf equipment, which is comprised of putting instruments, golf shafts, golf grips and related product groups. We design our golf products to fit golfers of all skill levels, amateur and professional, and our products are designed with the goal of conforming to the Rules of Golf as published by the United States Golf Association (“USGA”) and the ruling authority (“The R&A”). Our Products Our equipment includes putting instruments, golf shafts and grips. Our putting instruments are generally made of steel, aluminum, titanium alloys, carbon fiber, tungsten, and various other materials, including our patented magnesium face plate technologies. All of our products are currently sold under the SPG brand, but we intend to private label and sell certain components to interested third parties. Our shaft and putter technology has been shown by The Golf Lab, a Canadian golf research and education provider, to improve players’ ability to make putts, feel of the putter head, stroke, face angle at impact, and consistency for distance control. Our management believes that our proprietary shaft designs can enhance the performance of players’ putters as well as drivers and other golf clubs. Further, our management believes that these innovative designs, along with our proprietary manufacturing techniques, create performance improvements over traditional golf shafts. We were formed in 2018 as Sacks Parente Golf Company, LLC, a Delaware limited liability company. On March 18th, 2022, we converted into a Delaware corporation named Sacks Parente Golf, Inc. Sacks Parente Golf, Inc. 551 Calle San Pablo Camarillo, CA.