Comparing Topgolf Callaway Brands (NYSE:MODG) and Clarus (NASDAQ:CLAR)

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

Analyst Ratings

This is a summary of current ratings and price targets for Topgolf Callaway Brands and Clarus, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Topgolf Callaway Brands 0 0 1 0 3.00
Clarus 0 1 4 0 2.80

Topgolf Callaway Brands currently has a consensus target price of $38.00, indicating a potential upside of 76.09%. Clarus has a consensus target price of $30.20, indicating a potential upside of 134.29%. Given Clarus’ higher probable upside, analysts plainly believe Clarus is more favorable than Topgolf Callaway Brands.

Volatility and Risk

Topgolf Callaway Brands has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Clarus has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

78.1% of Topgolf Callaway Brands shares are held by institutional investors. Comparatively, 89.7% of Clarus shares are held by institutional investors. 13.5% of Topgolf Callaway Brands shares are held by insiders. Comparatively, 24.1% of Clarus shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Topgolf Callaway Brands 4.02% 4.17% 1.98%
Clarus 6.07% 14.84% 8.27%

Valuation and Earnings

This table compares Topgolf Callaway Brands and Clarus’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Topgolf Callaway Brands $3.13 billion 1.27 $321.99 million $0.74 29.16
Clarus $375.79 million 1.28 $26.09 million $0.71 18.15

Topgolf Callaway Brands has higher revenue and earnings than Clarus. Clarus 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.

Summary

Clarus beats Topgolf Callaway Brands on 8 of the 14 factors compared between the two stocks.

About Topgolf Callaway Brands

(Get Rating)

Topgolf Callaway Brands Corp. engages in the manufacture and distribution of golf equipment and accessories. It operates through the Golf Equipment and Apparel, Gear, and Other segments. The Golf Equipment segment focuses on the design, manufacture, and sale of a full line of golf equipment. The Apparel, Gear, and Other segment refers to the development and sale of soft goods under the Callaway, TravisMathew, OGIO, and Jack Wolfskin brands. The company was founded by Ely Reeves Callaway, Jr. in 1982 and is headquartered in Carlsbad, CA.

About Clarus

(Get Rating)

Clarus Corporation develops, manufactures, and distributes outdoor equipment and lifestyle products focusing on the outdoor and consumer markets in the United States, Canada, Europe, the Middle East, Asia, Australia, New Zealand, Africa, and South America. Its Outdoor segment offers activity-based apparel, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; skincare and other products; and skis, ski poles, ski skins, and snow safety products, such as avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment, PIEPS, and SKINourishment brands. The company's Precision Sport segment manufactures bullets and ammunition products for precision target shooting, hunting, and military and law enforcement purposes under the Sierra and Barnes brands. The company sells its products to mountain, rock, ice, and gym climbers; and winter outdoor enthusiasts, trail runners, backpackers, competitive shooters, hunters, and outdoor consumers. Its Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was incorporated in 1991 and is headquartered in Salt Lake City, Utah.

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