Analyzing Mattel (MAT) and Gravity (GRVY)
Mattel (NASDAQ: MAT) and Gravity (NASDAQ:GRVY) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Earnings and Valuation
This table compares Mattel and Gravity’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mattel||$4.88 billion||1.17||-$1.05 billion||($3.22)||-5.15|
Mattel pays an annual dividend of $0.53 per share and has a dividend yield of 3.2%. Gravity does not pay a dividend. Mattel pays out -16.5% of its earnings in the form of a dividend.
This table compares Mattel and Gravity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
93.9% of Mattel shares are held by institutional investors. Comparatively, 6.9% of Gravity shares are held by institutional investors. 1.4% of Mattel shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Mattel has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Gravity has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Mattel and Gravity, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mattel currently has a consensus price target of $19.45, indicating a potential upside of 17.41%. Given Mattel’s higher probable upside, analysts clearly believe Mattel is more favorable than Gravity.
Mattel beats Gravity on 8 of the 15 factors compared between the two stocks.
Mattel, Inc. manufactures and markets a range of toy products around the world. The Company’s segments are North America; International, and American Girl. Its portfolio of brands and products are grouped into approximately four major brand categories, including Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands and Construction and Arts & Crafts Brands. The Mattel Girls & Boys Brands category includes Barbie fashion dolls, Monster High, Disney Classics, Ever After High, Little Mommy, and Polly Pocket, Hot Wheels and Matchbox vehicles and play sets, and CARS, Disney Planes, BOOMco, Toy Story, Max Steel, WWE Wrestling and DC Comics. The Fisher-Price Brands category includes Fisher-Price, Little People, BabyGear, Laugh & Learn, Imaginext, Thomas & Friends, Blaze and The Monster Machines, Shimmer and Shine, Mickey Mouse Clubhouse, Minnie Mouse, Octonauts, and Power Wheels. The Construction and Arts & Crafts Brands category includes MEGA BLOKS, RoseArt and Board Dudes.
Gravity Co., Ltd. is a developer, distributor and publisher of online games in Japan and Taiwan. The Company’s segments include online games, mobile games and other. Its principal product includes Ragnarok Online, which is a multiplayer online role playing game. It categorizes products into over three categories, such as online games; mobile games and applications, and other games and game-related products and services, including character-based merchandise and animation. It offers over five online games, such as Ragnarok Online, Ragnarok Online II, Requiem, Dragonica (Dragon Saga) and R.O.S.E. Online, which are action adventure massively multiplayer online role-playing games (MMORPG). It develops mobile games, including Ragnarok Online-Uprising: Valkyrie, Ragnarok Online Mobile Story and Ragnarok Violet, and also publishes mobile games licensed from third parties. It provides games for game consoles and handheld game consoles, such as Nintendo DS, Xbox 360 and the PlayStation series.
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