Critical Review: GungHo Online Entertainment (GUNGF) and Its Peers

Insider & Institutional Ownership

2.6% of GungHo Online Entertainment shares are held by institutional investors. Comparatively, 35.4% of shares of all “Entertainment” companies are held by institutional investors. 23.8% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares GungHo Online Entertainment and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GungHo Online Entertainment	N/A	N/A	0.29
GungHo Online Entertainment Competitors	$4.13 billion	$74.78 million	13.63

GungHo Online Entertainment’s competitors have higher revenue and earnings than GungHo Online Entertainment. GungHo Online Entertainment is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares GungHo Online Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GungHo Online Entertainment	N/A	N/A	N/A
GungHo Online Entertainment Competitors	8.19%	-60.74%	-3.51%

Dividends

GungHo Online Entertainment pays an annual dividend of $199.57 per share and has a dividend yield of 1,263.1%. GungHo Online Entertainment pays out 370.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Entertainment” companies pay a dividend yield of 19.1% and pay out 78.7% of their earnings in the form of a dividend.

Summary

GungHo Online Entertainment competitors beat GungHo Online Entertainment on 6 of the 9 factors compared.

GungHo Online Entertainment Company Profile

GungHo Online Entertainment, Inc. plans, develops, operates, and distributes smartphone applications, console games, and online computer games. The company was formerly known as ONSale Co., Ltd. and changed its name to GungHo Online Entertainment, Inc. in August 2002. GungHo Online Entertainment, Inc. was incorporated in 1998 and is based in Tokyo, Japan.