Analyzing Topgolf Callaway Brands (NYSE:CALY) & OneWater Marine (NASDAQ:ONEW)

OneWater Marine (NASDAQ:ONEW) and Topgolf Callaway Brands (NYSE:CALY) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneWater Marine	-5.88%	4.32%	0.96%
Topgolf Callaway Brands	-1.66%	0.43%	0.14%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for OneWater Marine and Topgolf Callaway Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneWater Marine	1	3	2	0	2.17
Topgolf Callaway Brands	1	1	0	0	1.50

OneWater Marine presently has a consensus target price of $17.00, indicating a potential upside of 83.98%. Given OneWater Marine’s stronger consensus rating and higher probable upside, research analysts plainly believe OneWater Marine is more favorable than Topgolf Callaway Brands.

Valuation & Earnings

This table compares OneWater Marine 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
OneWater Marine	$1.88 billion	0.08	-$114.58 million	($6.74)	-1.37
Topgolf Callaway Brands	$2.06 billion	1.19	-$409.30 million	($0.32)	-41.78

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

Volatility and Risk

OneWater Marine has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Topgolf Callaway Brands has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

94.3% of OneWater Marine shares are owned by institutional investors. Comparatively, 84.7% of Topgolf Callaway Brands shares are owned by institutional investors. 19.5% of OneWater Marine 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 company is poised for long-term growth.

Summary

OneWater Marine beats Topgolf Callaway Brands on 10 of the 14 factors compared between the two stocks.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.

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.