Callaway Golf Company (CALY) vs Life Time Group Holdings, Inc. (LTH)

Callaway Golf Company and Life Time Group Holdings, Inc. are both Leisure companies. Life Time Group Holdings, Inc. is the larger, with a market value of $10.7B against $2.8B — 3.8× the size. Callaway Golf Company has negative trailing earnings, so its P/E is not meaningful; Life Time Group Holdings, Inc. trades at 25.2×. Life Time Group Holdings, Inc. grew revenue faster over the last twelve months: 13.0% against 3.71%. Life Time Group Holdings, Inc. has the higher net margin (12.7% vs −12.4%) and the higher return on invested capital (7.72% vs 6.58%). Across the 19 metrics below, Life Time Group Holdings, Inc. leads on 11 and Callaway Golf Company on 8.

Valuation

Metric CALY LTH Leisure median
P/E n/m 25.20 17.39
P/S 1.35 3.25 1.08
P/B 1.33 3.10 1.75
Price to free cash flow 8.47 n/m 11.20
EV/EBITDA 10.48 13.17 10.96
EV/Sales 1.24 3.61 1.87
Earnings yield (8.90%) 3.97% 3.10%
Free cash flow yield 11.81% (1.93%) 5.07%

Profitability

Metric CALY LTH Leisure median
Gross margin 44.79% 47.95% 47.50%
Operating margin 9.56% 17.37% 4.91%
Net margin (12.37%) 12.72% 7.35%
Free cash flow margin 15.90% (6.26%) 6.81%
Return on equity (11.33%) 13.02% 1.21%
Return on assets (5.07%) 5.10% 2.20%
Return on invested capital 6.58% 7.72% 5.26%

Growth

Metric CALY LTH Leisure median
Revenue growth (TTM) 3.71% 13.04% 2.89%
EPS growth (last fiscal year) 69.57% 124.32% (4.35%)
Revenue growth, 5-year CAGR 5.32% 25.86% 5.32%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CALY LTH Leisure median
Debt to equity 0.02 0.43 0.00
Current ratio 3.04 0.73 1.76
Net debt to EBITDA 3.09 1.63 1.53

Dividend

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

Size

Metric CALY LTH Leisure median
Market cap 2.84b 10.72b 555.10m

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