Head to Head Analysis: Massimo Group (NASDAQ:MAMO) & Topgolf Callaway Brands (NYSE:MODG)

Massimo Group (NASDAQ:MAMO) and Topgolf Callaway Brands (NYSE:MODG) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk and Volatility

Massimo Group has a beta of -0.13, suggesting that its share price is 113% less volatile than the S&P 500. Comparatively, Topgolf Callaway Brands has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Massimo Group and Topgolf Callaway Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Massimo Group	$111.21 million	1.03	$1.76 million	($0.05)	-55.40
Topgolf Callaway Brands	$4.19 billion	0.40	-$1.45 billion	($7.92)	-1.15

Massimo Group has higher earnings, but lower revenue than Topgolf Callaway Brands. Massimo Group 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Massimo Group	-2.21%	-6.88%	-2.94%
Topgolf Callaway Brands	-34.68%	1.51%	0.57%

Institutional & Insider Ownership

84.7% of Topgolf Callaway Brands shares are owned by institutional investors. 78.0% of Massimo Group shares are owned by company insiders. Comparatively, 2.4% of Topgolf Callaway Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Massimo Group and Topgolf Callaway Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Massimo Group	0	0	0	0	0.00
Topgolf Callaway Brands	2	6	3	0	2.09

Topgolf Callaway Brands has a consensus price target of $10.30, indicating a potential upside of 12.88%. Given Topgolf Callaway Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Topgolf Callaway Brands is more favorable than Massimo Group.

Summary

Topgolf Callaway Brands beats Massimo Group on 9 of the 14 factors compared between the two stocks.

About Massimo Group

Massimo Group, through its subsidiaries, engages in the manufacturing and sale of utility terrain vehicles, all-terrain vehicles, and pontoon and tritoon boats. The company also offers motorcycles, scooters, golf carts, and go karts and balance bikes, as well as snow equipment. In addition, it provides accessories, including EV chargers, electric coolers, power stations, and portable solar panels. The company sells its products through a network of dealerships, distributors, and chain stores, as well as the e-commerce marketplace. Massimo Group was founded in 2009 and is based in Garland, Texas.

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.