Amer Sports, Inc. (AS) vs Callaway Golf Company (CALY)

Amer Sports, Inc. and Callaway Golf Company are both Leisure companies. Amer Sports, Inc. is the larger, with a market value of $18.2B against $2.8B — 6.4× the size. Callaway Golf Company has negative trailing earnings, so its P/E is not meaningful; Amer Sports, Inc. trades at 32.2×. Amer Sports, Inc. grew revenue faster over the last twelve months: 30.5% against 3.71%. Amer Sports, Inc. has the higher net margin (7.35% vs −12.4%) and the higher return on invested capital (8.43% vs 6.58%). Across the 19 metrics below, Amer Sports, Inc. leads on 10 and Callaway Golf Company on 9.

Valuation

Metric AS CALY Leisure median
P/E 32.25 n/m 17.39
P/S 2.45 1.35 1.08
P/B 2.65 1.33 1.75
Price to free cash flow 28.71 8.47 11.20
EV/EBITDA 13.19 10.48 10.96
EV/Sales 2.48 1.24 1.87
Earnings yield 3.10% (8.90%) 3.10%
Free cash flow yield 3.48% 11.81% 5.07%

Profitability

Metric AS CALY Leisure median
Gross margin 59.81% 44.79% 47.50%
Operating margin 12.87% 9.56% 4.91%
Net margin 7.35% (12.37%) 7.35%
Free cash flow margin 8.54% 15.90% 6.81%
Return on equity 8.80% (11.33%) 1.21%
Return on assets 5.68% (5.07%) 2.20%
Return on invested capital 8.43% 6.58% 5.26%

Growth

Metric AS CALY Leisure median
Revenue growth (TTM) 30.49% 3.71% 2.89%
EPS growth (last fiscal year) 442.86% 69.57% (4.35%)
Revenue growth, 5-year CAGR — 5.32% 5.32%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric AS CALY Leisure median
Debt to equity 0.13 0.02 0.00
Current ratio 1.76 3.04 1.76
Net debt to EBITDA 0.87 3.09 1.53

Dividend

Metric AS CALY Leisure median
Dividend yield — 0.00% 1.77%
Payout ratio — 0.00 0.27

Size

Metric AS CALY Leisure median
Market cap 18.22b 2.84b 555.10m

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