Financial Analysis: Vision Marine Technologies (NASDAQ:VMAR) versus Newton Golf (NASDAQ:NWTG)

Newton Golf (NASDAQ:NWTG) and Vision Marine Technologies (NASDAQ:VMAR) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newton Golf	$8.14 million	0.73	-$6.02 million	($1.75)	-0.74
Vision Marine Technologies	$13.83 million	0.01	-$21.65 million	($222.72)	-0.01

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

Institutional and Insider Ownership

0.5% of Newton Golf shares are owned by institutional investors. Comparatively, 53.8% of Vision Marine Technologies shares are owned by institutional investors. 8.4% of Newton Golf shares are owned by company insiders. Comparatively, 40.4% of Vision Marine Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Newton Golf and Vision Marine Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newton Golf	-74.01%	-165.40%	-103.33%
Vision Marine Technologies	-54.94%	-281.97%	-46.90%

Analyst Ratings

This is a summary of current recommendations for Newton Golf and Vision Marine Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newton Golf	1	0	0	0	1.00
Vision Marine Technologies	1	0	0	0	1.00

Volatility and Risk

Newton Golf has a beta of 3.57, meaning that its share price is 257% more volatile than the S&P 500. Comparatively, Vision Marine Technologies has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Summary

Vision Marine Technologies beats Newton Golf on 6 of the 11 factors compared between the two stocks.

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.

About Vision Marine Technologies

Vision Marine Technologies Inc. designs, develops, manufactures, sells, and rents electric boats in Canada, the United States, and internationally. It offers e-motion electric powertrain technology; e-motion electric outboard powertrain system; electric boats; maintenance, repair, and customer support services; as well as manufactures customized boats. The company also provides its products through website and distributors. It serves original equipment manufacturers, retail customer, boat clubs, and boat rental operations. The company was formerly known as Riopel Marine Inc. and changed its name to Vision Marine Technologies Inc. in April 2020. Vision Marine Technologies Inc. was founded in 1995 and is headquartered in Boisbriand, Canada.