Callaway Golf Company (CALY) vs Peloton Interactive, Inc. (PTON)

Callaway Golf Company and Peloton Interactive, Inc. are both Leisure companies. Callaway Golf Company is the larger, with a market value of $2.8B against $2.5B — 1.1× the size. Callaway Golf Company has negative trailing earnings, so its P/E is not meaningful; Peloton Interactive, Inc. trades at 17.2×. Callaway Golf Company grew revenue faster over the last twelve months: 3.71% against −0.05%. Peloton Interactive, Inc. has the higher net margin (0.00% vs −12.4%) and the lower return on invested capital (0.00% vs 6.58%). Across the 19 metrics below, Peloton Interactive, Inc. leads on 14 and Callaway Golf Company on 5.

Valuation

Metric CALY PTON Leisure median
P/E n/m 17.18 17.39
P/S 1.35 1.02 1.08
P/B 1.33 n/m 1.75
Price to free cash flow 8.47 5.52 11.20
EV/EBITDA 10.48 10.83 10.96
EV/Sales 1.24 1.00 1.87
Earnings yield (8.90%) 5.82% 3.10%
Free cash flow yield 11.81% 18.11% 5.07%

Profitability

Metric CALY PTON Leisure median
Gross margin 44.79% 54.82% 47.50%
Operating margin 9.56% 0.00% 4.91%
Net margin (12.37%) 0.00% 7.35%
Free cash flow margin 15.90% 18.49% 6.81%
Return on equity (11.33%) 0.00% 1.21%
Return on assets (5.07%) 0.00% 2.20%
Return on invested capital 6.58% 0.00% 5.26%

Growth

Metric CALY PTON Leisure median
Revenue growth (TTM) 3.71% (0.05%) 2.89%
EPS growth (last fiscal year) 69.57% 146.67% (4.35%)
Revenue growth, 5-year CAGR 5.32% (9.47%) 5.32%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CALY PTON Leisure median
Debt to equity 0.02 (245.09) 0.00
Current ratio 3.04 3.05 1.76
Net debt to EBITDA 3.09 0.41 1.53

Dividend

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

Size

Metric CALY PTON Leisure median
Market cap 2.84b 2.52b 555.10m

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