Head-To-Head Analysis: Shimano (OTCMKTS:SMNNY) versus Newton Golf (NASDAQ:NWTG)

Shimano (OTCMKTS:SMNNY) and Newton Golf (NASDAQ:NWTG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

Shimano has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Newton Golf has a beta of 4.65, meaning that its stock price is 365% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Shimano and Newton Golf, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimano	0	0	0	0	0.00
Newton Golf	1	0	0	0	1.00

Institutional & Insider Ownership

0.0% of Shimano shares are held by institutional investors. Comparatively, 0.5% of Newton Golf shares are held by institutional investors. 8.4% of Newton Golf shares are held by company 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.

Profitability

This table compares Shimano and Newton Golf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	7.53%	4.23%	3.89%
Newton Golf	-205.92%	-570.38%	-164.24%

Valuation and Earnings

This table compares Shimano and Newton Golf”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$2.98 billion	3.33	$503.78 million	$0.26	43.50
Newton Golf	$3.44 million	2.44	-$11.75 million	($111.71)	-0.02

Shimano has higher revenue and earnings than Newton Golf. Newton Golf is trading at a lower price-to-earnings ratio than Shimano, indicating that it is currently the more affordable of the two stocks.

Summary

Shimano beats Newton Golf on 8 of the 12 factors compared between the two stocks.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

About Newton Golf

Sacks Parente Golf, Inc. (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States. We anticipate expanding into golf apparel and other golf related product lines to enhance our growth. Our future expansions may include broadening our offerings through mergers, acquisitions or internal developments of product lines that are complementary to our premium brand. Product Portfolio Characteristics We design, manufacture and sell technology-forward, high-quality golf equipment, which is comprised of putting instruments, golf shafts, golf grips and related product groups. We design our golf products to fit golfers of all skill levels, amateur and professional, and our products are designed with the goal of conforming to the Rules of Golf as published by the United States Golf Association (“USGA”) and the ruling authority (“The R&A”). Our Products Our equipment includes putting instruments, golf shafts and grips. Our putting instruments are generally made of steel, aluminum, titanium alloys, carbon fiber, tungsten, and various other materials, including our patented magnesium face plate technologies. All of our products are currently sold under the SPG brand, but we intend to private label and sell certain components to interested third parties. Our shaft and putter technology has been shown by The Golf Lab, a Canadian golf research and education provider, to improve players’ ability to make putts, feel of the putter head, stroke, face angle at impact, and consistency for distance control. Our management believes that our proprietary shaft designs can enhance the performance of players’ putters as well as drivers and other golf clubs. Further, our management believes that these innovative designs, along with our proprietary manufacturing techniques, create performance improvements over traditional golf shafts. We were formed in 2018 as Sacks Parente Golf Company, LLC, a Delaware limited liability company. On March 18th, 2022, we converted into a Delaware corporation named Sacks Parente Golf, Inc. Sacks Parente Golf, Inc. 551 Calle San Pablo Camarillo, CA.