Hasbro (NASDAQ:HAS) versus TruGolf (NASDAQ:TRUG) Critical Survey

Hasbro (NASDAQ:HAS) and TruGolf (NASDAQ:TRUG) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hasbro and TruGolf, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hasbro	0	2	13	1	2.94
TruGolf	1	0	0	0	1.00

Hasbro currently has a consensus price target of $114.93, indicating a potential downside of 3.35%. Given Hasbro’s stronger consensus rating and higher probable upside, research analysts clearly believe Hasbro is more favorable than TruGolf.

Valuation & Earnings

This table compares Hasbro and TruGolf”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hasbro	$4.70 billion	3.54	-$322.40 million	$6.69	17.77
TruGolf	$18.88 million	0.01	-$15.23 million	($108.20)	-0.00

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

Profitability

This table compares Hasbro and TruGolf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hasbro	18.44%	140.60%	17.09%
TruGolf	-55.27%	-132.15%	-24.75%

Institutional and Insider Ownership

91.8% of Hasbro shares are held by institutional investors. Comparatively, 3.2% of TruGolf shares are held by institutional investors. 0.7% of Hasbro shares are held by insiders. Comparatively, 5.8% of TruGolf shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Hasbro has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, TruGolf has a beta of -0.97, suggesting that its share price is 197% less volatile than the S&P 500.

Summary

Hasbro beats TruGolf on 12 of the 14 factors compared between the two stocks.

About Hasbro

Hasbro, Inc., together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments. The Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. This segment also promotes its brands through the out-licensing of trademarks, characters, and other brand and intellectual property rights to third parties through the sale of branded consumer products, such as toys and apparel. Its toys and games include action figures, arts and crafts and creative play products, dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games, and other consumer products; and licensed products, such as apparel, publishing products, home goods and electronics, and toy products. The Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading cards, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, production, and sale of entertainment content, including film, television, children's programming, digital content, and live entertainment. The company sells its products to retailers, distributors, wholesalers, discount stores, specialty hobby stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as e-commerce retailers; and directly to customers through its e-commerce websites under the MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PEPPA PIG, and other brand names. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.

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.