Acushnet Holdings Corp. (GOLF) & Black Diamond (NASDAQ:BDE) Financial Analysis

Black Diamond (NASDAQ: BDE) and Acushnet Holdings Corp. (NYSE:GOLF) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Black Diamond and Acushnet Holdings Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Diamond 0 1 2 0 2.67
Acushnet Holdings Corp. 0 8 6 0 2.43

Black Diamond currently has a consensus target price of $7.50, indicating a potential upside of 12.78%. Acushnet Holdings Corp. has a consensus target price of $21.61, indicating a potential upside of 31.45%. Given Acushnet Holdings Corp.’s higher possible upside, analysts clearly believe Acushnet Holdings Corp. is more favorable than Black Diamond.

Profitability

This table compares Black Diamond and Acushnet Holdings Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Diamond -4.51% -0.72% -0.57%
Acushnet Holdings Corp. 4.25% 10.27% 3.91%

Earnings & Valuation

This table compares Black Diamond and Acushnet Holdings Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Black Diamond N/A N/A N/A ($0.23) -28.91
Acushnet Holdings Corp. $1.53 billion 0.80 $174.85 million $0.53 31.02

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

Institutional & Insider Ownership

44.7% of Black Diamond shares are held by institutional investors. Comparatively, 39.2% of Acushnet Holdings Corp. shares are held by institutional investors. 33.6% of Black Diamond shares are held by company insiders. Comparatively, 54.0% of Acushnet Holdings Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Acushnet Holdings Corp. pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Black Diamond does not pay a dividend. Acushnet Holdings Corp. pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Acushnet Holdings Corp. beats Black Diamond on 9 of the 12 factors compared between the two stocks.

About Black Diamond

Black Diamond, Inc., through its ownership of Black Diamond Equipment, Ltd., is engaged in designing, manufacturing and marketing of active outdoor performance equipment and apparel for climbing, mountaineering, backpacking, skiing and a range of other year-round outdoor recreation activities. Its principal brands include Black Diamond and PIEPS. It offer a range of products, including apparel, such as jackets, shells, pants and bibs; rock-climbing equipment, such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear; technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns, and gloves and mittens. The Company also offers advanced skis, ski poles, ski bindings, ski skins, and ski safety products, including avalanche airbag systems, avalanche transceivers, shovels and probes. The Company’s products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries.

About Acushnet Holdings Corp.

Acushnet Holdings Corp. is engaged in the design, development, manufacture and distribution of golf products. The Company is engaged in various product categories, such as golf clubs, wedges, putters, golf gloves, golf gear and golf wear. The Company operates in four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear and FootJoy Golf Wear. The company’s Titleist golf ball segment is engaged in designing and manufacturing a golf ball. It sells Titleist Pro V1. The Company also designs, manufactures and sells other golf balls under the Titleist brand, such as NXT Tour, Velocity and DT TruSoft, as well as under the Pinnacle brand. The Company designs, assembles and sells golf clubs (drivers, fairways, hybrids and irons) under the Titleist brand, wedges under the Vokey Design brand, and putters under the Scotty Cameron brand. Titleist golf clubs, Vokey Design wedges and Scotty Cameron putters are used by the players.

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