Comparing TruGolf (NASDAQ:TRUG) & Polaris (NYSE:PII)

Polaris (NYSE:PII) and TruGolf (NASDAQ:TRUG) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Volatility & Risk

Polaris has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, TruGolf has a beta of -1.08, indicating that its stock price is 208% less volatile than the S&P 500.

Profitability

This table compares Polaris and TruGolf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polaris	-3.50%	16.77%	2.91%
TruGolf	-55.27%	-132.15%	-24.75%

Insider and Institutional Ownership

88.1% of Polaris shares are held by institutional investors. Comparatively, 3.2% of TruGolf shares are held by institutional investors. 2.4% of Polaris shares are held by insiders. Comparatively, 5.8% of TruGolf shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Polaris and TruGolf”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polaris	$7.15 billion	0.44	-$465.50 million	($4.63)	-11.92
TruGolf	$18.88 million	0.01	-$15.23 million	($108.20)	-0.01

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

Analyst Ratings

This is a breakdown of current ratings for Polaris and TruGolf, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polaris	1	12	1	0	2.00
TruGolf	1	0	0	0	1.00

Polaris presently has a consensus price target of $63.00, indicating a potential upside of 14.15%. Given Polaris’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Polaris is more favorable than TruGolf.

Summary

Polaris beats TruGolf on 11 of the 14 factors compared between the two stocks.

About Polaris

Polaris Inc. designs, engineers, manufactures, and markets powersports vehicles in the United States, Canada, and internationally. It operates through three segments: Off-Road, On-Road, and Marine. The company offers off-road vehicles (ORVs), including all-terrain vehicles and side-by-side vehicles; military and commercial ORVs; snowmobiles; motorcycles; and moto-roadsters, quadricycles, and boats. It also provides ORV accessories comprising winches, bumper/brushguards, plows, racks, wheels and tires, pull-behinds, cab systems, lighting and audio systems, cargo box accessories, tracks, and oil; snowmobile accessories, which include covers, traction products, reverse kits, electric starters, tracks, bags, windshields, oil, and lubricants; and motorcycle accessories, such as saddle bags, handlebars, backrests, exhausts, windshields, seats, oil, and various chrome accessories. In addition, the company offers light duty hauling and passenger vehicles; gear and apparel, such as helmets, goggles, jackets, gloves, boots, bibs, hats, pants, and leathers; and pontoon and deck boats. The company provides its products through dealers and distributors, and online; and retail and e-commerce marketplaces. The company was formerly known as Polaris Industries Inc. Polaris Inc. was founded in 1945 and is headquartered in Medina, Minnesota.

About TruGolf

TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.