Head to Head Contrast: Topgolf Callaway Brands (NYSE:CALY) & PLBY Group (NASDAQ:PLBY)

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

Profitability

This table compares Topgolf Callaway Brands and PLBY Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Topgolf Callaway Brands	1.05%	4.44%	1.59%
PLBY Group	-6.21%	21.89%	0.76%

Valuation and Earnings

This table compares Topgolf Callaway Brands and PLBY Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Topgolf Callaway Brands	$2.06 billion	1.59	-$409.30 million	$0.14	129.75
PLBY Group	$122.29 million	1.42	-$12.67 million	($0.08)	-18.69

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

Risk & Volatility

Topgolf Callaway Brands has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, PLBY Group has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.

Insider & Institutional Ownership

84.7% of Topgolf Callaway Brands shares are owned by institutional investors. Comparatively, 32.5% of PLBY Group shares are owned by institutional investors. 2.9% of Topgolf Callaway Brands shares are owned by company insiders. Comparatively, 34.5% of PLBY Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Topgolf Callaway Brands and PLBY Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Topgolf Callaway Brands	0	5	1	0	2.17
PLBY Group	2	0	0	0	1.00

Topgolf Callaway Brands currently has a consensus price target of $17.25, suggesting a potential downside of 5.04%. Given Topgolf Callaway Brands’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Topgolf Callaway Brands is more favorable than PLBY Group.

Summary

Topgolf Callaway Brands beats PLBY Group on 10 of the 14 factors compared between the two stocks.

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.

About PLBY Group

PLBY Group, Inc. operates as a pleasure and leisure company in the United States, Australia, China, the United Kingdom, and internationally. It operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. The company offers sexual wellness products, such as lingerie, bedroom accessories, intimacy products, and other adult products; style and apparel products for men and women; digital entertainment and lifestyle products; and beauty and grooming products for men and women, such as skincare, haircare, bath and body, grooming, cosmetics, and fragrance. It also owns and operates digital commerce retail platforms, such as playboy.com, honeybirdette.com, yandy.com, and loversstores.com; and Honey Birdette and Lovers retail stores. In addition, the company licenses Playboy name, Rabbit Head Design, and other trademarks and related properties; and programming content to cable television operators and direct-to-home satellite television operators. Further, the company business covers the subscription sale of playboyplus.com and playboy.tv, which are online content platforms. It offers its products under its flagship brand Playboy. PLBY Group, Inc. is headquartered in Los Angeles, California.