Financial Review: Amer Sports (NYSE:AS) and Topgolf Callaway Brands (NYSE:CALY)

Amer Sports (NYSE:AS) and Topgolf Callaway Brands (NYSE:CALY) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

Amer Sports has a beta of 2.8, meaning that its stock price is 180% more volatile than the S&P 500. Comparatively, Topgolf Callaway Brands has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

40.3% of Amer Sports shares are held by institutional investors. Comparatively, 84.7% of Topgolf Callaway Brands shares are held by institutional investors. 2.5% of Topgolf Callaway Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Amer Sports and Topgolf Callaway Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amer Sports	0	2	15	2	3.00
Topgolf Callaway Brands	1	1	0	0	1.50

Amer Sports presently has a consensus target price of $47.12, indicating a potential upside of 44.22%. Given Amer Sports’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Amer Sports is more favorable than Topgolf Callaway Brands.

Profitability

This table compares Amer Sports and Topgolf Callaway Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amer Sports	6.51%	9.74%	5.80%
Topgolf Callaway Brands	-1.66%	0.43%	0.14%

Valuation & Earnings

This table compares Amer Sports and Topgolf Callaway Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amer Sports	$6.57 billion	2.76	$427.40 million	$0.75	43.57
Topgolf Callaway Brands	$2.06 billion	1.22	-$409.30 million	($0.32)	-42.80

Amer Sports has higher revenue and earnings than Topgolf Callaway Brands. Topgolf Callaway Brands is trading at a lower price-to-earnings ratio than Amer Sports, indicating that it is currently the more affordable of the two stocks.

Summary

Amer Sports beats Topgolf Callaway Brands on 13 of the 15 factors compared between the two stocks.

About Amer Sports

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.

About Topgolf Callaway Brands

Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game. The Golf Equipment segment provides drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs under the Callaway and Odyssey brands, as well as golf balls under the Callaway Golf and Strata brands. The Active Lifestyle segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; golf and lifestyle apparel, hats, luggage, and accessories under the TravisMathew brand; and footwear, belts, hats, facemasks, sunglasses, socks, and underwear under the Cuater by TravisMathew brand. This segment also provides storage and travel gear for sport and personal use, such as backpacks; travel, duffel, and golf bags; and storage gear accessories, as well as outerwear, headwear, and accessories under the OGIO brand. In addition, it offers outdoor apparel comprising jackets, trousers, dresses, skirts, and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories under the Jack Wolfskin brand. The company sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as directly to consumers through its retail stores and websites. The company was formerly known as Callaway Golf Company and changed its name to Topgolf Callaway Brands Corp. in September 2022. Topgolf Callaway Brands Corp. was incorporated in 1982 and is headquartered in Carlsbad, California.