Callaway Golf Company (CALY) vs Mattel, Inc. (MAT)

Callaway Golf Company and Mattel, Inc. are both Leisure companies. Mattel, Inc. is the larger, with a market value of $4.3B against $2.8B — 1.5× the size. Callaway Golf Company has negative trailing earnings, so its P/E is not meaningful; Mattel, Inc. trades at 10.9×. Callaway Golf Company grew revenue faster over the last twelve months: 3.71% against 2.89%. Mattel, Inc. has the higher net margin (7.78% vs −12.4%) and the higher return on invested capital (7.04% vs 6.58%). Across the 21 metrics below, Callaway Golf Company leads on 11 and Mattel, Inc. on 10.

Valuation

Metric CALY MAT Leisure median
P/E n/m 10.86 17.39
P/S 1.35 0.79 1.08
P/B 1.33 2.17 1.75
Price to free cash flow 8.47 9.96 11.20
EV/EBITDA 10.48 10.75 10.96
EV/Sales 1.24 1.23 1.87
Earnings yield (8.90%) 9.21% 3.10%
Free cash flow yield 11.81% 10.04% 5.07%

Profitability

Metric CALY MAT Leisure median
Gross margin 44.79% 47.50% 47.50%
Operating margin 9.56% 7.82% 4.91%
Net margin (12.37%) 7.78% 7.35%
Free cash flow margin 15.90% 7.92% 6.81%
Return on equity (11.33%) 20.50% 1.21%
Return on assets (5.07%) 6.78% 2.20%
Return on invested capital 6.58% 7.04% 5.26%

Growth

Metric CALY MAT Leisure median
Revenue growth (TTM) 3.71% 2.89% 2.89%
EPS growth (last fiscal year) 69.57% (21.52%) (4.35%)
Revenue growth, 5-year CAGR 5.32% 3.11% 5.32%
Net income growth, 5-year CAGR 0.00% 26.33% 0.00%

Health

Metric CALY MAT Leisure median
Debt to equity 0.02 1.17 0.00
Current ratio 3.04 1.90 1.76
Net debt to EBITDA 3.09 1.42 1.53

Dividend

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

Size

Metric CALY MAT Leisure median
Market cap 2.84b 4.28b 555.10m

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