Critical Analysis: Performance Sports Group (PSG) vs. Golfsmith International Holdings (GOLF)

Performance Sports Group (NYSE: PSG) and Golfsmith International Holdings (NASDAQ:GOLF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Performance Sports Group and Golfsmith International Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Performance Sports Group 0 1 0 0 2.00
Golfsmith International Holdings 0 8 5 0 2.38

Performance Sports Group currently has a consensus price target of $4.00, indicating a potential upside of 14.94%. Golfsmith International Holdings has a consensus price target of $20.36, indicating a potential upside of 21.25%. Given Golfsmith International Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Golfsmith International Holdings is more favorable than Performance Sports Group.

Institutional and Insider Ownership

76.3% of Performance Sports Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Performance Sports Group and Golfsmith International Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Performance Sports Group -32.06% -0.52% -0.14%
Golfsmith International Holdings N/A N/A N/A

Earnings & Valuation

This table compares Performance Sports Group and Golfsmith International Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Performance Sports Group N/A N/A N/A ($4.25) -0.82
Golfsmith International Holdings $1.53 billion 0.82 $174.85 million N/A N/A

Golfsmith International Holdings has higher revenue and earnings than Performance Sports Group.

Summary

Golfsmith International Holdings beats Performance Sports Group on 7 of the 8 factors compared between the two stocks.

About Performance Sports Group

Old PSG Wind-down Ltd, formerly Performance Sports Group Ltd, is a Canada-based company, which is engaged in the design, manufacture and distribution of performance sports equipment for ice hockey, roller hockey, baseball and softball, lacrosse, as well as related apparel and accessories, including soccer apparel. Its segments include Hockey, Baseball/Softball and Other Sports. The Hockey segment includes the Bauer and Mission brands. The Baseball/Softball segment includes the Easton and Combat brands. Its Other Sports includes the Lacrosse and Soccer operating segments, which includes the Maverik and Cascade brands for Lacrosse, and the Inaria brand for Soccer. The ice hockey products include skates, helmets, protective gear, sticks, team apparel and accessories. The roller hockey products include skates, helmets, protective gear, sticks and accessories. The baseball and softball products include bats, gloves, helmets, protective gear, apparel and accessories.

About Golfsmith International Holdings

Golfsmith International Holdings, Inc, the parent company of Golfsmith International, Inc, is a holding company. The Company is a specialty retailer of golf and tennis equipment, apparel, footwear and accessories. The Company operates as an integrated multi-channel retailer, providing its customers the convenience of shopping in the retail stores across United States, through its Internet site, www.golfsmith.com, and from its catalogs.

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