Critical Survey: Mattel (MAT) versus Its Peers

Mattel (NASDAQ:MAT) is one of 95 publicly-traded companies in the “Leisure Products” industry, but how does it contrast to its peers? We will compare Mattel to similar businesses based on the strength of its earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

97.2% of Mattel shares are held by institutional investors. Comparatively, 45.3% of shares of all “Leisure Products” companies are held by institutional investors. 1.9% of Mattel shares are held by company insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Mattel has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Mattel’s peers have a beta of 1.24, suggesting that their average stock price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mattel and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mattel	$5.35 billion	$397.58 million	11.34
Mattel Competitors	$2.93 billion	$72.16 million	571.71

Mattel has higher revenue and earnings than its peers. Mattel is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Mattel and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mattel	7.79%	16.20%	5.37%
Mattel Competitors	-8.28%	-18.35%	-3.90%

Analyst Recommendations

This is a summary of current ratings and price targets for Mattel and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mattel	3	4	5	1	2.31
Mattel Competitors	560	2384	3805	188	2.52

Mattel currently has a consensus price target of $18.00, suggesting a potential upside of 16.73%. As a group, “Leisure Products” companies have a potential upside of 28.49%. Given Mattel’s peers stronger consensus rating and higher possible upside, analysts plainly believe Mattel has less favorable growth aspects than its peers.

Summary

Mattel beats its peers on 7 of the 13 factors compared.

Mattel Company Profile

Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.