Critical Review: Interactive Strength (NASDAQ:TRNR) vs. Acushnet (NYSE:GOLF)

Acushnet (NYSE:GOLF) and Interactive Strength (NASDAQ:TRNR) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

53.1% of Acushnet shares are held by institutional investors. Comparatively, 0.6% of Interactive Strength shares are held by institutional investors. 53.3% of Acushnet shares are held by company insiders. Comparatively, 0.1% of Interactive Strength shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Acushnet and Interactive Strength”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acushnet	$2.56 billion	1.95	$188.54 million	$3.67	23.26
Interactive Strength	$11.53 million	0.42	-$23.97 million	($306.87)	-0.01

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

Profitability

This table compares Acushnet and Interactive Strength’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acushnet	8.12%	27.98%	9.60%
Interactive Strength	-159.24%	-469.40%	-52.97%

Analyst Ratings

This is a breakdown of current recommendations for Acushnet and Interactive Strength, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acushnet	0	7	1	0	2.12
Interactive Strength	1	0	0	1	2.50

Acushnet presently has a consensus target price of $99.17, indicating a potential upside of 16.15%. Interactive Strength has a consensus target price of $157.50, indicating a potential upside of 5,194.12%. Given Interactive Strength’s stronger consensus rating and higher probable upside, analysts plainly believe Interactive Strength is more favorable than Acushnet.

Volatility & Risk

Acushnet has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Interactive Strength has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Summary

Acushnet beats Interactive Strength on 12 of the 15 factors compared between the two stocks.

About Acushnet

Acushnet Holdings Corp. designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally. The company operates through four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear, and FootJoy Golf Wear. It offers golf balls under the Titleist brand; golf clubs, such as drivers, fairways, hybrids, and irons under the Titleist brand; wedges under the Vokey Design brand; and putters under the Scotty Cameron brand. The company also provides golf bags, headwear, golf gloves, travel products, and other golf accessories. In addition, it offers golf shoes, gloves, golf outerwear, and men’s and women’s golf apparel under the FootJoy brand; and ski, golf, and lifestyle apparel under the KJUS brand name. It sells its products through on-course golf shops and golf specialty retailers, as well as through representatives, other retailers, and online. The company was formerly known as Alexandria Holdings Corp. and changed its name to Acushnet Holdings Corp. in March 2016. Acushnet Holdings Corp. was founded in 1910 and is headquartered in Fairhaven, Massachusetts.

About Interactive Strength

Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. The company offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. It also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. Interactive Strength Inc. was incorporated in 2017 and is headquartered in Austin, Texas.