Analyzing Leatt (OTCMKTS:LEAT) and Acushnet (NYSE:GOLF)

Leatt (OTCMKTS:LEAT) and Acushnet (NYSE:GOLF) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability

This table compares Leatt and Acushnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Leatt	4.12%	5.87%	4.97%
Acushnet	8.80%	27.50%	9.53%

Volatility and Risk

Leatt has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Acushnet has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Leatt and Acushnet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leatt	$44.03 million	1.27	-$2.20 million	$0.36	24.72
Acushnet	$2.46 billion	2.37	$214.30 million	$3.66	27.15

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Leatt and Acushnet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leatt	0	0	0	0	0.00
Acushnet	0	6	1	1	2.38

Acushnet has a consensus price target of $84.33, suggesting a potential downside of 15.12%. Given Acushnet’s stronger consensus rating and higher probable upside, analysts plainly believe Acushnet is more favorable than Leatt.

Insider and Institutional Ownership

0.6% of Leatt shares are held by institutional investors. Comparatively, 53.1% of Acushnet shares are held by institutional investors. 80.0% of Leatt shares are held by insiders. Comparatively, 53.6% of Acushnet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Acushnet beats Leatt on 13 of the 15 factors compared between the two stocks.

About Leatt

Leatt Corporation designs, develops, markets, and distributes personal protective equipment for participants of motor sports and leisure activities worldwide. The company offers Leatt-Brace system, an injection molded neck protection system designed to prevent injuries to the cervical spine and neck. It also provides helmets for head and brain protection; and body armor products, including chest protectors, full upper body protectors, upper body protection vests, back protectors, knee braces, knee and elbow guards, off-road motorcycle boots, and mountain biking shoes. In addition, the company offers other products, parts, and accessories, such as goggles; toolbelt, duffel, gear, helmet bags, hats, and hydration kits; casual clothing, caps, and sunglasses; and apparel that comprises suits, jackets, jerseys, pants, shorts, socks, and gloves, as well as aftermarket support products. Further, it acts as the original equipment manufacturer for personal protective equipment sold by other brands. The company's products are used by riders of motorcycles, bicycles, snowmobiles, and ATVs. It sells its products to customers through a network of distributors and retailers; and direct to end consumers through digital channels and online store at leatt.com. The company was formerly known as Treadzone, Inc. and changed its name to Leatt Corporation in May 2005. The company was founded in 2001 and is headquartered in Durbanville, South Africa.

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.