Bally Technologies (NYSE: BYI) and JAKKS Pacific (NASDAQ:JAKK) are both games, toys & children vehicles companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Insider & Institutional Ownership

56.8% of JAKKS Pacific shares are held by institutional investors. 5.4% of JAKKS Pacific shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Bally Technologies has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, JAKKS Pacific has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bally Technologies and JAKKS Pacific, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bally Technologies 0 0 0 0 N/A
JAKKS Pacific 0 6 0 0 2.00

JAKKS Pacific has a consensus price target of $3.93, suggesting a potential upside of 42.73%. Given JAKKS Pacific’s higher probable upside, analysts plainly believe JAKKS Pacific is more favorable than Bally Technologies.

Profitability

This table compares Bally Technologies and JAKKS Pacific’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bally Technologies N/A N/A N/A
JAKKS Pacific -9.36% -15.58% -4.89%

Valuation and Earnings

This table compares Bally Technologies and JAKKS Pacific’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bally Technologies N/A N/A N/A $2.31 36.05
JAKKS Pacific $706.60 million 0.11 $1.24 million ($3.02) -0.91

JAKKS Pacific has higher revenue and earnings than Bally Technologies. JAKKS Pacific is trading at a lower price-to-earnings ratio than Bally Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Bally Technologies beats JAKKS Pacific on 5 of the 9 factors compared between the two stocks.

Bally Technologies Company Profile

Bally Technologies, Inc. (Bally) is a global gaming company, which designs, manufactures, operates, and distributes advanced technology-based gaming devices, systems, server-based solutions, custom mobile applications, and interactive applications. The Company also provides hardware, including spinning-reel and video gaming devices, specialty gaming devices, and wide-area progressive systems. The Company supports customers include land-based, riverboat, and Native American casinos, video lottery and central determination markets. The Company derives its revenue from sale of gaming devices and related equipment, parts and conversion kits; operation of linked progressive systems, video lottery and centrally determined systems, and the rental of gaming devices and content, and sale and support of specialized systems-based software, hardware and interactive products and related recurring maintenance revenue. In July 2014, Bally Technologies Inc acquired Dragonplay Ltd. (Dragonplay).

JAKKS Pacific Company Profile

JAKKS Pacific, Inc. is a multi-line, multi-brand toy company. The Company designs, produces, markets and distributes toys and related products, pet toys, consumables and related products, electronics and related products, kids indoor and outdoor furniture, and other consumer products. The Company operates through two business segments: traditional toys and electronics, and role play, novelty and seasonal toys. The traditional toys and electronics segment includes action figures, vehicles, playsets, plush products, dolls, accessories, electronic products, construction toys, infant and pre-school toys, foot to floor ride-on vehicles, wagons and pet products and related products. The role play, novelty and seasonal segment includes role play and dress-up products, novelty toys, seasonal and outdoor products, indoor and outdoor kids’ furniture and Halloween and everyday costume play.

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