Analyzing Simulated Environment Concepts (OTCMKTS:SMEV) & Acushnet (NYSE:GOLF)

Simulated Environment Concepts (OTCMKTS:SMEV) and Acushnet (NYSE:GOLF) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Simulated Environment Concepts and Acushnet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulated Environment Concepts	0	0	0	0	0.00
Acushnet	1	4	2	0	2.14

Acushnet has a consensus price target of $73.00, suggesting a potential downside of 9.36%. Given Acushnet’s stronger consensus rating and higher probable upside, analysts plainly believe Acushnet is more favorable than Simulated Environment Concepts.

Profitability

This table compares Simulated Environment Concepts and Acushnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simulated Environment Concepts	N/A	N/A	N/A
Acushnet	9.24%	28.05%	9.94%

Insider and Institutional Ownership

0.2% of Simulated Environment Concepts shares are held by institutional investors. Comparatively, 53.1% of Acushnet shares are held by institutional investors. 62.6% of Simulated Environment Concepts shares are held by insiders. Comparatively, 53.6% of Acushnet shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Simulated Environment Concepts and Acushnet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulated Environment Concepts	N/A	N/A	N/A	N/A	N/A
Acushnet	$2.46 billion	1.92	$214.30 million	$3.74	21.53

Acushnet has higher revenue and earnings than Simulated Environment Concepts.

Risk & Volatility

Simulated Environment Concepts has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Acushnet has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

Acushnet beats Simulated Environment Concepts on 8 of the 9 factors compared between the two stocks.

About Simulated Environment Concepts

Simulated Environment Concepts, Inc. engages in the development and manufacture of medical, health, and wellness equipments in the United States and internationally. Its products include SpaCapsule, a robotic massage therapy system used for medical rehabilitation, relaxation, weight loss, slimming, cellulite management, and general wellness; and PTjetCapsule. The company also offers components, parts, accessories, and peripheral massage and health related items. Its products are used in various environments, such as corporate employee lounges, relaxation centers, gyms and health clubs, doctor's offices, hotels, tanning and beauty salons/spas, luxury accommodations, gulf clubs, ski lounges, shopping centers and malls, airports, cruise ships, luxury yachts, and homes. Simulated Environment Concepts, Inc. was founded in 1993 and is based in Miami, Florida.

About Acushnet

Acushnet Holdings Corp. designs, develops, manufactures, and distributes golf products in the United States, Europe, the Middle East, Africa, Japan, Korea, and internationally. The company operates through four segments: Titleist Golf Balls, Titleist Golf Clubs, Titleist Golf Gear, and FootJoy Golf Wear. It offers golf balls under the Titleist brand; golf clubs, such as drivers, fairways, hybrids, and irons under the Titleist brand; wedges under the Vokey Design brand; and putters under the Scotty Cameron brand. The company also provides golf bags, headwear, golf gloves, travel products, and other golf accessories. In addition, it offers golf shoes, gloves, golf outerwear, and men’s and women’s golf apparel under the FootJoy brand; and ski, golf, and lifestyle apparel under the KJUS brand name. It sells its products through on-course golf shops and golf specialty retailers, as well as through representatives, other retailers, and online. The company was formerly known as Alexandria Holdings Corp. and changed its name to Acushnet Holdings Corp. in March 2016. Acushnet Holdings Corp. was founded in 1910 and is headquartered in Fairhaven, Massachusetts.