Critical Analysis: TruGolf (NASDAQ:TRUG) vs. Solo Brands (NYSE:DTC)

TruGolf (NASDAQ:TRUG) and Solo Brands (NYSE:DTC) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares TruGolf and Solo Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TruGolf	N/A	N/A	-18.40%
Solo Brands	-23.52%	6.99%	4.31%

Valuation & Earnings

This table compares TruGolf and Solo Brands’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TruGolf	N/A	N/A	-$400,000.00	N/A	N/A
Solo Brands	$494.78 million	0.38	-$111.35 million	($2.01)	-1.03

TruGolf has higher earnings, but lower revenue than Solo Brands.

Insider and Institutional Ownership

3.2% of TruGolf shares are held by institutional investors. Comparatively, 84.5% of Solo Brands shares are held by institutional investors. 37.2% of TruGolf shares are held by company insiders. Comparatively, 0.7% of Solo Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for TruGolf and Solo Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TruGolf	0	0	0	0	N/A
Solo Brands	1	6	1	0	2.00

Solo Brands has a consensus target price of $3.54, indicating a potential upside of 71.10%. Given Solo Brands’ higher possible upside, analysts plainly believe Solo Brands is more favorable than TruGolf.

Volatility & Risk

TruGolf has a beta of -0.73, suggesting that its stock price is 173% less volatile than the S&P 500. Comparatively, Solo Brands has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500.

Summary

Solo Brands beats TruGolf on 7 of the 10 factors compared between the two stocks.

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.

About Solo Brands

Solo Brands, Inc. operates a direct-to-consumer platform that offers outdoor and lifestyle branded products in the United States. The company provides camp stoves under the Solo Stove Lite brand name; fire pits under the Solo Stove brand name; kayaks under the Oru brand name; paddle boards under the ISLE brand name; and storage solutions for fire pits, firewood, and other accessories. It also offers swim trunks, casual shorts, sport products, polos, shirts, and lounge products under the Chubbies brand name; consumables, such as color packs, starters, natural charcoal, fuel, pellets, and firewood products; and accessories comprising shelters, shields, roasting sticks, tools, paddles, and pumps under the Solo Stove, Oru, and ISLE brands. Solo Brands, Inc. was founded in 2011 and is headquartered in Grapevine, Texas.