Analyzing Spin Master (OTCMKTS:SNMSF) & Acushnet (NYSE:GOLF)

Acushnet (NYSE:GOLF) and Spin Master (OTCMKTS:SNMSF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Valuation and Earnings

This table compares Acushnet and Spin Master’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acushnet	$2.38 billion	1.74	$198.43 million	$2.88	23.26
Spin Master	N/A	N/A	N/A	N/A	N/A

Acushnet has higher revenue and earnings than Spin Master.

Profitability

This table compares Acushnet and Spin Master’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acushnet	7.91%	21.17%	8.64%
Spin Master	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acushnet	0	4	3	0	2.43
Spin Master	0	0	1	0	3.00

Acushnet currently has a consensus target price of $66.43, suggesting a potential downside of 0.84%. Spin Master has a consensus target price of $46.00, suggesting a potential upside of 91.58%. Given Spin Master’s stronger consensus rating and higher possible upside, analysts clearly believe Spin Master is more favorable than Acushnet.

Insider and Institutional Ownership

53.1% of Acushnet shares are owned by institutional investors. 54.6% of Acushnet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Acushnet beats Spin Master on 7 of the 9 factors compared between the two stocks.

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.

About Spin Master

Spin Master Corp., a children's entertainment company, engages in the creation, design, manufacture, licensing, and marketing of various toys, entertainment products, and digital games in North America, Europe, and internationally. The Toys segment's product categories include activities, games and puzzles, and plush; wheels and action; outdoor; and preschool, dolls, and interactive products. The Entertainment segment engages in the creation and production of multi-platform content, stories, and characters in original shows, short-form series, and films. The Digital Games segment is involved in the development of digital games distributed via third-party platform providers. The company was founded in 1994 and is headquartered in Toronto, Canada.