Contrasting TruGolf (NASDAQ:TRUG) and Topgolf Callaway Brands (NYSE:MODG)

TruGolf (NASDAQ:TRUG) and Topgolf Callaway Brands (NYSE:MODG) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Valuation & Earnings

This table compares TruGolf and Topgolf Callaway Brands’ 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
Topgolf Callaway Brands	$4.28 billion	0.67	$95.00 million	$0.46	33.91

Topgolf Callaway Brands has higher revenue and earnings than TruGolf.

Profitability

This table compares TruGolf and Topgolf Callaway 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%
Topgolf Callaway Brands	2.22%	2.39%	1.03%

Insider and Institutional Ownership

3.2% of TruGolf shares are held by institutional investors. Comparatively, 84.7% of Topgolf Callaway Brands shares are held by institutional investors. 37.2% of TruGolf shares are held by company insiders. Comparatively, 12.0% of Topgolf Callaway Brands shares are held by company 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.

Volatility & Risk

TruGolf has a beta of -0.43, indicating that its share price is 143% less volatile than the S&P 500. Comparatively, Topgolf Callaway Brands has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for TruGolf and Topgolf Callaway Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TruGolf	0	0	0	0	N/A
Topgolf Callaway Brands	1	3	6	0	2.50

Topgolf Callaway Brands has a consensus price target of $20.64, indicating a potential upside of 32.28%. Given Topgolf Callaway Brands’ higher probable upside, analysts plainly believe Topgolf Callaway Brands is more favorable than TruGolf.

Summary

Topgolf Callaway Brands beats TruGolf on 9 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 Topgolf Callaway Brands

Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game. The Golf Equipment segment provides drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs under the Callaway and Odyssey brands, as well as golf balls under the Callaway Golf and Strata brands. The Active Lifestyle segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; golf and lifestyle apparel, hats, luggage, and accessories under the TravisMathew brand; and footwear, belts, hats, facemasks, sunglasses, socks, and underwear under the Cuater by TravisMathew brand. This segment also provides storage and travel gear for sport and personal use, such as backpacks; travel, duffel, and golf bags; and storage gear accessories, as well as outerwear, headwear, and accessories under the OGIO brand. In addition, it offers outdoor apparel comprising jackets, trousers, dresses, skirts, and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories under the Jack Wolfskin brand. The company sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as directly to consumers through its retail stores and websites. The company was formerly known as Callaway Golf Company and changed its name to Topgolf Callaway Brands Corp. in September 2022. Topgolf Callaway Brands Corp. was incorporated in 1982 and is headquartered in Carlsbad, California.