WallStSmart

Callaway Golf Company (CALY)vsMattel Inc (MAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Mattel Inc generates 154% more annual revenue ($5.38B vs $2.12B). MAT leads profitability with a 9.3% profit margin vs -15.0%. CALY appears more attractively valued with a PEG of 0.72. CALY earns a higher WallStSmart Score of 62/100 (C+).

CALY

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 4.5Value: 6.0Quality: 5.0

MAT

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 5.5Value: 8.7Quality: 5.8
Piotroski: 3/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CALYUndervalued (+25.4%)

Margin of Safety

+25.4%

Fair Value

$20.18

Current Price

$17.52

$2.66 discount

UndervaluedFair: $20.18Overvalued
MATUndervalued (+34.4%)

Margin of Safety

+34.4%

Fair Value

$24.10

Current Price

$15.39

$8.71 discount

UndervaluedFair: $24.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CALY4 strengths · Avg: 8.5/10
EPS GrowthGrowth
4598.0%10/10

Earnings expanding 4598.0% YoY

PEG RatioValuation
0.728/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

MAT3 strengths · Avg: 9.0/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.6%9/10

Every $100 of equity generates 24 in profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

CALY4 concerns · Avg: 2.3/10
Return on EquityProfitability
2.2%3/10

ROE of 2.2% — below average capital efficiency

P/E RatioValuation
67.4x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-37.1%2/10

Revenue declined 37.1%

Free Cash FlowQuality
$-176.00M2/10

Negative free cash flow — burning cash

MAT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-18.5%2/10

Earnings declined 18.5%

Free Cash FlowQuality
$-88.05M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CALY

The strongest argument for CALY centers on EPS Growth, PEG Ratio, Price/Book. PEG of 0.72 suggests the stock is reasonably priced for its growth.

Bull Case : MAT

The strongest argument for MAT centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bear Case : CALY

The primary concerns for CALY are Return on Equity, P/E Ratio, Revenue Growth. A P/E of 67.4x leaves little room for execution misses.

Bear Case : MAT

The primary concerns for MAT are Revenue Growth, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

CALY profiles as a turnaround stock while MAT is a value play — different risk/reward profiles.

CALY carries more volatility with a beta of 0.96 — expect wider price swings.

MAT is growing revenue faster at 4.3% — sustainability is the question.

MAT generates stronger free cash flow (-88M), providing more financial flexibility.

Bottom Line

CALY scores higher overall (62/100 vs 56/100). MAT offers better value entry with a 34.4% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Callaway Golf Company

CONSUMER CYCLICAL · LEISURE · USA

Callaway Golf Company designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The company is headquartered in Carlsbad, California.

Mattel Inc

CONSUMER CYCLICAL · LEISURE · USA

Mattel, Inc., a children's entertainment company, designs and produces toys and consumer products worldwide. The company is headquartered in El Segundo, California.

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