Contrasting Johnson Outdoors (NASDAQ:JOUT) & Newton Golf (NASDAQ:NWTG)

Johnson Outdoors (NASDAQ:JOUT) and Newton Golf (NASDAQ:NWTG) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Insider & Institutional Ownership

64.1% of Johnson Outdoors shares are held by institutional investors. Comparatively, 0.5% of Newton Golf shares are held by institutional investors. 28.0% of Johnson Outdoors shares are held by insiders. Comparatively, 8.4% of Newton Golf shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Johnson Outdoors and Newton Golf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson Outdoors	-5.79%	-1.92%	-1.36%
Newton Golf	-172.69%	-566.85%	-160.82%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Johnson Outdoors and Newton Golf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Outdoors	1	1	0	0	1.50
Newton Golf	1	0	0	0	1.00

Risk & Volatility

Johnson Outdoors has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Newton Golf has a beta of 4.45, indicating that its share price is 345% more volatile than the S&P 500.

Valuation & Earnings

This table compares Johnson Outdoors and Newton Golf”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Outdoors	$592.42 million	0.77	-$34.29 million	($3.35)	-13.14
Newton Golf	$3.44 million	2.35	-$11.75 million	($1.23)	-1.38

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

Summary

Johnson Outdoors beats Newton Golf on 7 of the 12 factors compared between the two stocks.

About Johnson Outdoors

Johnson Outdoors Inc. designs, manufactures, and markets seasonal and outdoor recreational products for fishing worldwide. It operates through four segments: Fishing, Camping, Watercraft Recreation, and Diving. The Fishing segment offers electric motors for trolling, marine battery chargers, and shallow water anchors; sonar and GPS equipment for fish finding, navigation, and marine cartography; and downriggers for controlled-depth fishing. This segment sells its products under the Minn Kota, Humminbird, and Cannon brands through outdoor specialty and Internet retailers, retail store chains, original equipment manufacturers, and distributors. The Camping segment provides consumer, commercial, and military tents and accessories; camping stoves; other recreational camping products; and portable outdoor cooking systems. This segment sells its products under the Eureka! and Jetboil brands through specialty stores, sporting goods stores, internet retailers, and direct to consumers. The Watercraft Recreation segment offers kayaks, canoes, and paddles for family recreation, touring, angling, and tripping through independent specialty and outdoor retailers under Old Town and Carlisle brands. The Diving segment manufactures and markets underwater diving and snorkeling equipment, such as regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels, and accessories through independent specialty dive stores and diving magazines under the SCUBAPRO brand name. This segment also provides regular maintenance, product repair, diving education, and travel program services; and sells diving gear to dive training centers, resorts, and public safety units. It sells its products through websites. The company was founded in 1970 and is headquartered in Racine, Wisconsin.

About Newton Golf

Sacks Parente Golf, Inc. (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States. We anticipate expanding into golf apparel and other golf related product lines to enhance our growth. Our future expansions may include broadening our offerings through mergers, acquisitions or internal developments of product lines that are complementary to our premium brand. Product Portfolio Characteristics We design, manufacture and sell technology-forward, high-quality golf equipment, which is comprised of putting instruments, golf shafts, golf grips and related product groups. We design our golf products to fit golfers of all skill levels, amateur and professional, and our products are designed with the goal of conforming to the Rules of Golf as published by the United States Golf Association (“USGA”) and the ruling authority (“The R&A”). Our Products Our equipment includes putting instruments, golf shafts and grips. Our putting instruments are generally made of steel, aluminum, titanium alloys, carbon fiber, tungsten, and various other materials, including our patented magnesium face plate technologies. All of our products are currently sold under the SPG brand, but we intend to private label and sell certain components to interested third parties. Our shaft and putter technology has been shown by The Golf Lab, a Canadian golf research and education provider, to improve players’ ability to make putts, feel of the putter head, stroke, face angle at impact, and consistency for distance control. Our management believes that our proprietary shaft designs can enhance the performance of players’ putters as well as drivers and other golf clubs. Further, our management believes that these innovative designs, along with our proprietary manufacturing techniques, create performance improvements over traditional golf shafts. We were formed in 2018 as Sacks Parente Golf Company, LLC, a Delaware limited liability company. On March 18th, 2022, we converted into a Delaware corporation named Sacks Parente Golf, Inc. Sacks Parente Golf, Inc. 551 Calle San Pablo Camarillo, CA.