Brunswick (NYSE:BC) vs. Newton Golf (NASDAQ:NWTG) Financial Analysis

Brunswick (NYSE:BC) and Newton Golf (NASDAQ:NWTG) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Brunswick and Newton Golf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brunswick	1	7	6	1	2.47
Newton Golf	1	0	0	0	1.00

Brunswick presently has a consensus price target of $87.00, suggesting a potential upside of 3.62%. Given Brunswick’s stronger consensus rating and higher possible upside, analysts clearly believe Brunswick is more favorable than Newton Golf.

Earnings & Valuation

This table compares Brunswick 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
Brunswick	$5.36 billion	1.02	-$137.30 million	($2.10)	-39.98
Newton Golf	$8.14 million	0.58	-$6.02 million	($1.78)	-0.57

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

Risk & Volatility

Brunswick has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Newton Golf has a beta of 2.64, indicating that its stock price is 164% more volatile than the S&P 500.

Insider and Institutional Ownership

99.3% of Brunswick shares are owned by institutional investors. Comparatively, 0.5% of Newton Golf shares are owned by institutional investors. 1.0% of Brunswick shares are owned by company insiders. Comparatively, 8.4% of Newton Golf shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brunswick	-2.47%	13.30%	4.09%
Newton Golf	-103.02%	-476.84%	-184.18%

Summary

Brunswick beats Newton Golf on 10 of the 15 factors compared between the two stocks.

About Brunswick

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. It operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands. The Engine P&A segment offers engine parts and consumables, electrical products, boat parts and systems, and engine oils and lubricants through aftermarket retailers, dealers, distributors, and original equipment manufacturers for marine and non-marine markets under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands; and distributes marine parts and accessories. The Navico Group segment provides products and systems for the marine, recreational vehicle (RV), specialty vehicle, mobile, and industrial markets, as well as aftermarket channels; and marine electronics, sensors, control systems, instruments, power systems, and general accessories under the Ancor, Attwood, B&G, BEP, Blue Sea Systems, C-MAP, CZone, Lenco, Lowrance, Marinco, Mastervolt, MotorGuide, Progressive Industries, ProMariner, RELiON, Simrad, and Whale brand names. The Boat segment offers Sea Ray sport boats and cruisers; Bayliner sport cruisers, runabouts, and Heyday wake boats; Boston Whaler fiberglass offshore boats; Lund fiberglass fishing boats; Crestliner, Harris, Lowe, Lund, Princecraft aluminum fishing, utility, pontoon, and deck boats; Thunder Jet heavy-gauge aluminum boats; Veer recreational and fishing boats; and the freedom boat club, dealer services, and technology to the marine industry through dealers and distributors. Brunswick Corporation was founded in 1845 and is headquartered in Mettawa, Illinois.

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.