Summer Infant (NASDAQ: SUMR) and Hasbro (NASDAQ:HAS) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Valuation and Earnings

This table compares Summer Infant and Hasbro’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Summer Infant $194.00 million 0.19 $4.68 million ($0.19) -10.58
Hasbro $5.13 billion 2.31 $989.99 million $4.62 20.48

Hasbro has higher revenue and earnings than Summer Infant. Summer Infant is trading at a lower price-to-earnings ratio than Hasbro, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Summer Infant and Hasbro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summer Infant -1.82% 0.56% 0.09%
Hasbro 11.44% 32.24% 11.99%

Dividends

Hasbro pays an annual dividend of $2.28 per share and has a dividend yield of 2.4%. Summer Infant does not pay a dividend. Hasbro pays out 49.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for Summer Infant and Hasbro, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summer Infant 0 0 2 0 3.00
Hasbro 0 8 5 0 2.38

Summer Infant currently has a consensus target price of $2.75, suggesting a potential upside of 36.82%. Hasbro has a consensus target price of $106.90, suggesting a potential upside of 12.96%. Given Summer Infant’s stronger consensus rating and higher probable upside, analysts clearly believe Summer Infant is more favorable than Hasbro.

Volatility & Risk

Summer Infant has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, Hasbro has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Institutional & Insider Ownership

47.6% of Summer Infant shares are owned by institutional investors. Comparatively, 79.7% of Hasbro shares are owned by institutional investors. 3.3% of Summer Infant shares are owned by company insiders. Comparatively, 11.0% of Hasbro shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Hasbro beats Summer Infant on 12 of the 16 factors compared between the two stocks.

Summer Infant Company Profile

Summer Infant, Inc. is an infant and juvenile products company. The Company is engaged in the juvenile industry, providing mothers and caregivers a range of products to care for babies and toddlers. As of December 31, 2016, it marketed over 1,100 products in several product categories, including monitoring, safety, nursery, baby gear and feeding products. It markets its products, under its Summer Infant, SwaddleMe and Born Free brand names. Its anchor products in its product categories include monitoring, such as wireless fidelity (Wi-Fi)/Internet, video, audio and prenatal; safety, including gates, bath, potties, boosters and positioners; nursery, such as swaddle, travel accessories, safe sleep, soothers and sleep aides; baby gear, including strollers, bassinets, high chairs and playards, and feeding products, such as bottles, drinking cups, bibs and placemats, electronics and pacifiers. It sells its products across the globe to national retailers, as well as independent retailers.

Hasbro Company Profile

Hasbro, Inc. (Hasbro) is a play and entertainment company. The Company’s operating segments include the U.S. and Canada, International, and Entertainment and Licensing. From toys and games to content development, including television programming, motion pictures, digital gaming and a consumer products licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. The Company’s U.S. and Canada segment is engaged in the marketing and sale of its products in the United States and Canada. The International segment is engaged in the marketing and sale of the Company’s product categories to retailers and wholesalers in most countries in Europe, Latin and South America, and the Asia Pacific region and through distributors in those countries where it has no direct presence. The Entertainment and Licensing segment includes the Company’s consumer products licensing, digital gaming, television and movie entertainment operations.

Receive News & Stock Ratings for Summer Infant Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Summer Infant Inc. and related stocks with our FREE daily email newsletter.