Reviewing Callaway Golf (ELY) and Its Peers

Callaway Golf (NYSE:ELYGet Rating) is one of 18 publicly-traded companies in the “Sporting & athletic goods, not elsewhere classified” industry, but how does it weigh in compared to its competitors? We will compare Callaway Golf to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Callaway Golf 4.02% 4.17% 1.98%
Callaway Golf Competitors -6.30% 0.24% 1.77%

Earnings and Valuation

This table compares Callaway Golf and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Callaway Golf $3.13 billion $321.99 million 28.82
Callaway Golf Competitors $3.70 billion $106.29 million 4.02

Callaway Golf’s competitors have higher revenue, but lower earnings than Callaway Golf. Callaway 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.

Volatility and Risk

Callaway Golf has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Callaway Golf’s competitors have a beta of 1.04, meaning that their average stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Callaway Golf and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callaway Golf 0 1 8 0 2.89
Callaway Golf Competitors 51 413 897 12 2.63

Callaway Golf currently has a consensus price target of $38.11, indicating a potential upside of 78.67%. As a group, “Sporting & athletic goods, not elsewhere classified” companies have a potential upside of 129.58%. Given Callaway Golf’s competitors higher probable upside, analysts plainly believe Callaway Golf has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

78.1% of Callaway Golf shares are owned by institutional investors. Comparatively, 68.2% of shares of all “Sporting & athletic goods, not elsewhere classified” companies are owned by institutional investors. 13.5% of Callaway Golf shares are owned by company insiders. Comparatively, 16.1% of shares of all “Sporting & athletic goods, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Callaway Golf beats its competitors on 9 of the 13 factors compared.

About Callaway Golf

(Get Rating)

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories. It operates through three segments: Topgolf; Golf Equipment; and Apparel, Gear and Other. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, multiple bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology used by independent driving ranges and broadcast television; 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 Apparel, Gear and Other segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; and golf and lifestyle apparel, hats, luggage and accessories, footwear, belts, facemasks, sunglasses, socks, and underwear under the TravisMathew brand. This segment also provides storage 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, on-line retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as through its websites in the United States and approximately 120 countries. The company was incorporated in 1982 and is headquartered in Carlsbad, California.

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