Games Workshop Group (OTCMKTS:GMWKF) vs. Acushnet (NYSE:GOLF) Head to Head Analysis

Games Workshop Group (OTCMKTS:GMWKF) and Acushnet (NYSE:GOLF) are both consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Insider & Institutional Ownership

63.2% of Games Workshop Group shares are owned by institutional investors. Comparatively, 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Games Workshop Group and Acushnet’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Games Workshop Group	N/A	N/A	N/A	$0.22	636.83
Acushnet	$2.40 billion	1.78	$198.43 million	$2.88	23.46

Acushnet has higher revenue and earnings than Games Workshop Group. Acushnet is trading at a lower price-to-earnings ratio than Games Workshop Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Games Workshop Group and Acushnet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Games Workshop Group	0	0	0	0	N/A
Acushnet	0	4	3	0	2.43

Acushnet has a consensus price target of $66.43, indicating a potential downside of 1.69%. Given Acushnet’s higher possible upside, analysts clearly believe Acushnet is more favorable than Games Workshop Group.

Profitability

This table compares Games Workshop Group and Acushnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Games Workshop Group	N/A	N/A	N/A
Acushnet	8.03%	20.65%	8.73%

Dividends

Games Workshop Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.3%. Acushnet pays an annual dividend of $0.86 per share and has a dividend yield of 1.3%. Games Workshop Group pays out 163.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acushnet pays out 29.9% of its earnings in the form of a dividend. Acushnet is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Acushnet beats Games Workshop Group on 10 of the 12 factors compared between the two stocks.

About Games Workshop Group

Games Workshop Group PLC, together with its subsidiaries, designs, manufactures, distributes, and sells miniature figures and games in the United Kingdom, Continental Europe, North America, Australia, New Zealand, Asia, and internationally. It operates in two segments, Core and Licensing. The company offers games under the Warhammer: Age of Sigmar, Necromunda, and Warhammer 40,000 names, as well as Horus Heresy and Blood Bowl. It also publishes short stories, audio dramas, full length novels, and audio books under the Black Library name; and develops digital content for animation and TV. In addition, the company provides painting and modelling products, boxed games, and gifts; and engages in the newsstand and trustee businesses. It offers its products through its retail stores, social media sites, and warhammer-community.com; and physical bookstores, third party online platforms, and other retail and specialist stores. Games The company was incorporated in 1991 and is headquartered in Nottingham, the United Kingdom.

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.