Mattel (NASDAQ:MAT – Get Free Report) and TruGolf (NASDAQ:TRUG – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
Mattel has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, TruGolf has a beta of -1.07, meaning that its share price is 207% less volatile than the S&P 500.
Profitability
This table compares Mattel and TruGolf’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mattel | 7.79% | 16.20% | 5.37% |
| TruGolf | -75.06% | -181.14% | -36.13% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mattel | 2 | 6 | 4 | 2 | 2.43 |
| TruGolf | 1 | 1 | 1 | 0 | 2.00 |
Mattel presently has a consensus target price of $17.33, indicating a potential upside of 17.20%. Given Mattel’s stronger consensus rating and higher possible upside, analysts clearly believe Mattel is more favorable than TruGolf.
Insider & Institutional Ownership
97.2% of Mattel shares are owned by institutional investors. Comparatively, 3.2% of TruGolf shares are owned by institutional investors. 1.9% of Mattel shares are owned by company insiders. Comparatively, 5.8% of TruGolf shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Mattel and TruGolf”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mattel | $5.35 billion | 0.80 | $397.58 million | $1.36 | 10.87 |
| TruGolf | $18.66 million | 0.05 | -$15.23 million | ($207.35) | -0.00 |
Mattel has higher revenue and earnings than TruGolf. TruGolf is trading at a lower price-to-earnings ratio than Mattel, indicating that it is currently the more affordable of the two stocks.
Summary
Mattel beats TruGolf on 14 of the 15 factors compared between the two stocks.
About Mattel
Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.
About TruGolf
TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.
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