Callaway Golf Company (CALY) vs Six Flags Entertainment Corporation (FUN)

Callaway Golf Company and Six Flags Entertainment Corporation are both Leisure companies. Callaway Golf Company is the larger, with a market value of $2.6B against $1.3B — 2.0× the size. Six Flags Entertainment Corporation has negative trailing earnings, so its P/E is not meaningful; Callaway Golf Company trades at 29.5×. Callaway Golf Company grew revenue faster over the last twelve months: 111.8% against −3.46%. Callaway Golf Company has the higher net margin (−12.4% vs −57.3%) and the higher return on invested capital (6.58% vs −17.0%). Across the 20 metrics below, Callaway Golf Company leads on 14 and Six Flags Entertainment Corporation on 6.

Valuation

Metric CALY FUN Leisure median
P/E 29.47 n/m 17.42
P/S 1.22 0.41 1.02
P/B 1.20 10.92 2.13
Price to free cash flow 7.66 3.07 11.49
EV/EBITDA 9.40 9.12 9.97
EV/Sales 1.11 2.00 2.00
Earnings yield 3.39% (140.58%) 2.85%
Free cash flow yield 13.05% 32.56% 3.64%

Profitability

Metric CALY FUN Leisure median
Gross margin 44.79% 91.37% 48.02%
Operating margin 9.56% (44.21%) 3.08%
Net margin (12.37%) (57.25%) 2.58%
Free cash flow margin 15.90% 13.34% 2.13%
Return on equity (11.33%) (185.33%) 0.00%
Return on assets (5.07%) (20.74%) 0.05%
Return on invested capital 6.58% (17.01%) 3.95%

Growth

Metric CALY FUN Leisure median
Revenue growth (TTM) 111.77% (3.46%) 3.28%
EPS growth (last fiscal year) 102.66% (392.86%) —
Revenue growth, 5-year CAGR 5.32% 76.39% 4.22%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CALY FUN Leisure median
Debt to equity 0.02 43.47 0.02
Current ratio 3.04 0.42 1.76
Net debt to EBITDA 3.09 8.09 1.85

Dividend

Metric CALY FUN Leisure median
Dividend yield — 2.90% 2.86%
Payout ratio 0.00 — 0.00

Size

Metric CALY FUN Leisure median
Market cap 2.58b 1.28b 293.27m

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