Head to Head Analysis: Malibu Boats (NASDAQ:MBUU) vs. Newton Golf (NASDAQ:NWTG)

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

Institutional & Insider Ownership

91.4% of Malibu Boats shares are held by institutional investors. Comparatively, 0.5% of Newton Golf shares are held by institutional investors. 1.2% of Malibu Boats shares are held by insiders. Comparatively, 8.4% of Newton Golf shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Malibu Boats and Newton Golf”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Malibu Boats	$807.56 million	0.80	$14.88 million	$0.77	43.71
Newton Golf	$3.44 million	2.47	-$11.75 million	($111.71)	-0.02

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Malibu Boats	1.84%	4.93%	3.42%
Newton Golf	-205.92%	-570.38%	-164.24%

Analyst Recommendations

This is a summary of recent recommendations for Malibu Boats and Newton Golf, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Malibu Boats	1	6	1	0	2.00
Newton Golf	0	0	0	0	0.00

Malibu Boats currently has a consensus price target of $36.40, indicating a potential upside of 8.14%. Given Malibu Boats’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Malibu Boats is more favorable than Newton Golf.

Volatility and Risk

Malibu Boats has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Newton Golf has a beta of 4.67, indicating that its share price is 367% more volatile than the S&P 500.

Summary

Malibu Boats beats Newton Golf on 11 of the 14 factors compared between the two stocks.

About Malibu Boats

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.

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.