Topgolf Callaway Brands (CALY) & Its Competitors Critical Comparison

Topgolf Callaway Brands (NYSE:CALY) is one of 33 public companies in the “LEISURE&REC PRD” industry, but how does it compare to its rivals? We will compare Topgolf Callaway Brands to related businesses based on the strength of its earnings, dividends, profitability, risk, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Topgolf Callaway Brands and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Topgolf Callaway Brands	1	0	0	0	1.00
Topgolf Callaway Brands Competitors	304	1170	2004	84	2.52

As a group, “LEISURE&REC PRD” companies have a potential upside of 21.16%. Given Topgolf Callaway Brands’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Topgolf Callaway Brands has less favorable growth aspects than its rivals.

Volatility and Risk

Topgolf Callaway Brands has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Topgolf Callaway Brands’ rivals have a beta of 1.55, meaning that their average share price is 55% more volatile than the S&P 500.

Valuation and Earnings

This table compares Topgolf Callaway Brands and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Topgolf Callaway Brands	$2.06 billion	-$409.30 million	-41.64
Topgolf Callaway Brands Competitors	$1.56 billion	$29.30 million	1.94

Topgolf Callaway Brands has higher revenue, but lower earnings than its rivals. Topgolf Callaway Brands is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Topgolf Callaway Brands	-1.66%	0.43%	0.14%
Topgolf Callaway Brands Competitors	-12.03%	-38.63%	-7.59%

Insider & Institutional Ownership

84.7% of Topgolf Callaway Brands shares are held by institutional investors. Comparatively, 56.5% of shares of all “LEISURE&REC PRD” companies are held by institutional investors. 2.5% of Topgolf Callaway Brands shares are held by insiders. Comparatively, 22.4% of shares of all “LEISURE&REC PRD” companies are held 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

Topgolf Callaway Brands rivals beat Topgolf Callaway Brands on 8 of the 13 factors compared.

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.