Contrasting Mastercraft Boat (NASDAQ:MCFT) and Topgolf Callaway Brands (NYSE:CALY)

Topgolf Callaway Brands (NYSE:CALY) and Mastercraft Boat (NASDAQ:MCFT) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Topgolf Callaway Brands and Mastercraft Boat”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Topgolf Callaway Brands	$2.13 billion	1.17	-$409.30 million	$0.43	32.49
Mastercraft Boat	$348.90 million	1.38	-$1.66 million	($0.02)	-996.50

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

Insider & Institutional Ownership

84.7% of Topgolf Callaway Brands shares are held by institutional investors. Comparatively, 97.6% of Mastercraft Boat shares are held by institutional investors. 2.9% of Topgolf Callaway Brands shares are held by company insiders. Comparatively, 2.5% of Mastercraft Boat shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Topgolf Callaway Brands and Mastercraft Boat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Topgolf Callaway Brands	3.37%	5.86%	2.48%
Mastercraft Boat	-0.48%	11.08%	8.08%

Volatility and Risk

Topgolf Callaway Brands has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Mastercraft Boat has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Topgolf Callaway Brands and Mastercraft Boat, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Topgolf Callaway Brands	0	5	3	0	2.38
Mastercraft Boat	2	4	0	0	1.67

Topgolf Callaway Brands currently has a consensus target price of $19.83, suggesting a potential upside of 41.95%. Mastercraft Boat has a consensus target price of $24.25, suggesting a potential upside of 21.68%. Given Topgolf Callaway Brands’ stronger consensus rating and higher possible upside, equities analysts plainly believe Topgolf Callaway Brands is more favorable than Mastercraft Boat.

Summary

Topgolf Callaway Brands beats Mastercraft Boat on 8 of the 14 factors compared between the two stocks.

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.

About Mastercraft Boat

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. It operates through MasterCraft, Crest, and Aviara segments. The MasterCraft segment produces premium recreational performance sport boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. Crest segment provides pontoon boats for use in general recreational boating. The Aviara segment produces luxury day boats for use in general recreational boating. The company also offers ski/wake, outboard, and sterndrive boats, as well as various accessories, including trailers and aftermarket parts. It sells its boats under the MasterCraft, Crest, and Aviara brands through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. MasterCraft Boat Holdings, Inc. was incorporated in 2000 and is headquartered in Vonore, Tennessee.