Critical Contrast: Acushnet (NYSE:GOLF) & Peloton Interactive (NASDAQ:PTON)

Acushnet (NYSE:GOLF) and Peloton Interactive (NASDAQ:PTON) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Acushnet has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Acushnet 9.64% 17.82% 9.48%
Peloton Interactive 5.78% 11.53% 5.66%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acushnet 0 3 2 0 2.40
Peloton Interactive 2 4 23 0 2.72

Acushnet presently has a consensus price target of $44.86, indicating a potential downside of 10.98%. Peloton Interactive has a consensus price target of $140.39, indicating a potential upside of 32.34%. Given Peloton Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe Peloton Interactive is more favorable than Acushnet.

Valuation and Earnings

This table compares Acushnet and Peloton Interactive’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acushnet $1.61 billion 2.31 $96.01 million $1.73 29.13
Peloton Interactive $1.83 billion 17.33 -$71.60 million ($0.32) -331.50

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

Insider & Institutional Ownership

47.2% of Acushnet shares are owned by institutional investors. Comparatively, 68.8% of Peloton Interactive shares are owned by institutional investors. 54.1% of Acushnet shares are owned by insiders. Comparatively, 16.5% of Peloton Interactive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Acushnet Company Profile

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. The Titleist Golf Balls segment offers golf balls, such as Pro V1, Pro V1x, AVX, Tour Soft, Velocity, and Pinnacle golf balls, as well as provides custom imprinted golf balls with corporate logos, tournament logos, country club or resort logos, and personalization on Titleist and Pinnacle golf balls. The Titleist Golf Clubs segment designs, assembles, and sells golf clubs, such as drivers, fairways, hybrids, and irons under the Titleist brand; wedges under the Vokey Design brand; and putters under Scotty Cameron brand. The Titleist Golf Gear segment designs and develops golf bags, headwear, golf gloves, travel products, head covers, and other golf accessories, as well as offers customization and personalization of products in Titleist golf gear. The FootJoy Golf Wear segment provides traditional, casual, athletic, and spikeless shoes; gloves that include leather construction, synthetic, and leather/synthetic combination, as well as specialty gloves comprising rain and winter specific offerings; and outerwear and apparels, such as golf outerwear, and men's and women's golf apparels. It sells its products through on-course golf shops and golf specialty retailers, as well as through representatives, other qualified 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.

Peloton Interactive Company Profile

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. As of December 09, 2020, it had approximately 3.6 million members. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

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