Contrasting Marine Products (NYSE:MPX) & Topgolf Callaway Brands (NYSE:MODG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marine Products	6.26%	10.98%	7.98%
Topgolf Callaway Brands	-34.68%	1.51%	0.57%

Institutional & Insider Ownership

13.9% of Marine Products shares are owned by institutional investors. Comparatively, 84.7% of Topgolf Callaway Brands shares are owned by institutional investors. 75.2% of Marine Products shares are owned by insiders. Comparatively, 2.5% of Topgolf Callaway Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marine Products	$236.55 million	1.25	$17.85 million	$0.40	21.14
Topgolf Callaway Brands	$4.24 billion	0.35	-$1.45 billion	($7.92)	-1.02

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

Risk and Volatility

Marine Products has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Topgolf Callaway Brands has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Marine Products and Topgolf Callaway Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marine Products	0	1	0	0	2.00
Topgolf Callaway Brands	1	8	3	0	2.17

Marine Products presently has a consensus target price of $8.00, suggesting a potential downside of 5.38%. Topgolf Callaway Brands has a consensus target price of $10.14, suggesting a potential upside of 25.14%. Given Topgolf Callaway Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Topgolf Callaway Brands is more favorable than Marine Products.

Summary

Marine Products beats Topgolf Callaway Brands on 8 of the 14 factors compared between the two stocks.

About Marine Products

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sport boat and sport fishing boat markets worldwide. The company offers Chaparral sterndrive pleasure boats, including SSi Sport Boats, SSX Sport Boats, and the Surf Series; Chaparral outboard pleasure boats, which include OSX Luxury Sportboats and SSi outboard models; and Robalo outboard sport fishing boats. It also provides center and dual consoles, and Cayman Bay Boats under the Robalo brand name. The company sells its products to a network of domestic and international independent authorized dealers. Marine Products Corporation was founded in 1965 and is based in Atlanta, Georgia. Marine Products Corporation operates as a subsidiary of LOR, Inc.

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.