Critical Review: Games Workshop Group (GMWKF) & Its Rivals

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Games Workshop Group and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Games Workshop Group	0	0	1	0	3.00
Games Workshop Group Competitors	514	2306	3734	177	2.53

As a group, “Leisure Products” companies have a potential upside of 6.48%. Given Games Workshop Group’s peers higher probable upside, analysts clearly believe Games Workshop Group has less favorable growth aspects than its peers.

Dividends

Games Workshop Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Games Workshop Group pays out 163.6% 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, “Leisure Products” companies pay a dividend yield of 2.8% and pay out 64.1% of their earnings in the form of a dividend. Games Workshop Group lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

63.2% of Games Workshop Group shares are held by institutional investors. Comparatively, 44.5% of shares of all “Leisure Products” companies are held by institutional investors. 15.6% of shares of all “Leisure Products” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Games Workshop Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Games Workshop Group	N/A	N/A	N/A
Games Workshop Group Competitors	-7.89%	-14.53%	-2.40%

Valuation & Earnings

This table compares Games Workshop Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Games Workshop Group	N/A	N/A	1,227.12
Games Workshop Group Competitors	$2.98 billion	$71.31 million	529.12

Games Workshop Group’s peers have higher revenue and earnings than Games Workshop Group. Games Workshop Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Games Workshop Group beats its peers on 7 of the 13 factors compared.

About Games Workshop Group

Games Workshop Group PLC, together with its subsidiaries, designs, manufactures, distributes, and sells miniature figures and games in the United Kingdom, Continental Europe, North America, Australia, New Zealand, Asia, and internationally. It operates in two segments, Core and Licensing. The company offers games under the Warhammer: Age of Sigmar, Necromunda, and Warhammer 40,000 names, as well as Horus Heresy and Blood Bowl. It also publishes short stories, audio dramas, full length novels, and audio books under the Black Library name; and develops digital content for animation and TV. In addition, the company provides painting and modelling products, boxed games, and gifts; and engages in the newsstand and trustee businesses. It offers its products through its retail stores, social media sites, and warhammer-community.com; and physical bookstores, third party online platforms, and other retail and specialist stores. Games The company was incorporated in 1991 and is headquartered in Nottingham, the United Kingdom.