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Callaway vs. Acushnet Holdings: Which Golf Stock is a Better Buy?

Published 04/15/2021, 03:59 PM
Updated 04/15/2021, 05:01 PM
© Reuters.  Callaway vs. Acushnet Holdings: Which Golf Stock is a Better Buy?
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Many more people have opted to spend time playing golf for recreation amid the COVID-19 pandemic because the game comports with social distancing requirements. Consequently, golf equipment manufacturers Callaway Golf (NYSE:ELY) and Acushnet Holdings (NYSE:GOLF) witnessed increased net sales late last year. But which of these stocks is the better buy now?.As one of the sports that allows for social distancing, golf 's popularity climbed last year as many people were drawn to it as a preferred leisure activity amid the coronavirus pandemic. To capitalize on this trend, golf equipment manufacturing companies have been designing golf balls and other equipment that better suit beginners. Furthermore, tournament organizers have been making changes, such as conducting short competitions and improving golf courses. As a result, the global golf equipment market is expected to grow at a CAGR of 5.8% over the next three years.

Popular golf equipment manufacturers Callaway Golf Company (ELY) and Acushnet Holdings Corp . (GOLF) are well positioned to capitalize on the industry tailwinds.

Both stocks generated significant returns over the past year. While ELY returned 165.7% over this period, GOLF gained 88.8%. However, because people are now focusing on other outdoor activities as mass vaccinations take effect, ELY has lost 6.4% over the past month, while GOLF slumped 3.8%. So, which of these stocks is a better pick now? Let's find out.

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