Acushnet (GOLF) and The Competition Head-To-Head Review

Acushnet (NYSE:GOLF) is one of 95 public companies in the “Leisure Products” industry, but how does it weigh in compared to its rivals? We will compare Acushnet to related companies based on the strength of its analyst recommendations, dividends, earnings, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

53.1% of Acushnet shares are owned by institutional investors. Comparatively, 45.3% of shares of all “Leisure Products” companies are owned by institutional investors. 53.3% of Acushnet shares are owned by insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies are owned 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.

Volatility and Risk

Acushnet has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Acushnet’s rivals have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.

Profitability

This table compares Acushnet and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acushnet	8.17%	27.92%	9.43%
Acushnet Competitors	-8.21%	-18.19%	-3.85%

Analyst Ratings

This is a summary of current recommendations and price targets for Acushnet and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acushnet	0	8	1	0	2.11
Acushnet Competitors	564	2388	3812	188	2.52

Acushnet presently has a consensus price target of $97.67, indicating a potential upside of 16.74%. As a group, “Leisure Products” companies have a potential upside of 27.35%. Given Acushnet’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Acushnet has less favorable growth aspects than its rivals.

Dividends

Acushnet pays an annual dividend of $1.02 per share and has a dividend yield of 1.2%. Acushnet pays out 27.6% of its earnings in the form of a dividend. As a group, “Leisure Products” companies pay a dividend yield of 2.9% and pay out 55.4% of their earnings in the form of a dividend. Acushnet has increased its dividend for 8 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Acushnet	$2.56 billion	$188.54 million	22.67
Acushnet Competitors	$3.02 billion	$72.16 million	574.57

Acushnet’s rivals have higher revenue, but lower earnings than Acushnet. Acushnet 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.

Summary

Acushnet rivals beat Acushnet on 8 of the 15 factors compared.

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.