adidas (OTCMKTS:ADDYY) versus TruGolf (NASDAQ:TRUG) Critical Analysis

adidas (OTCMKTS:ADDYY) and TruGolf (NASDAQ:TRUG) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a summary of current ratings for adidas and TruGolf, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
adidas	0	0	8	0	3.00
TruGolf	0	0	0	0	N/A

Profitability

This table compares adidas and TruGolf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
adidas	-0.33%	-2.21%	-0.61%
TruGolf	N/A	N/A	-18.40%

Valuation & Earnings

This table compares adidas and TruGolf’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
adidas	$23.19 billion	N/A	-$81.17 million	($0.22)	-562.82
TruGolf	N/A	N/A	-$400,000.00	N/A	N/A

TruGolf has lower revenue, but higher earnings than adidas.

Risk and Volatility

adidas has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, TruGolf has a beta of -0.43, meaning that its stock price is 143% less volatile than the S&P 500.

Institutional & Insider Ownership

3.2% of TruGolf shares are owned by institutional investors. 37.2% of TruGolf shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

TruGolf beats adidas on 5 of the 9 factors compared between the two stocks.

About adidas

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear, apparel, and accessories and gear, such as bags and balls under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.

About TruGolf

TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.