JAKKS Pacific (NASDAQ:JAKK) versus Kandi Technologies Group (NASDAQ:KNDI) Financial Review

Kandi Technologies Group (NASDAQ:KNDI) and JAKKS Pacific (NASDAQ:JAKK) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kandi Technologies Group	N/A	N/A	N/A
JAKKS Pacific	2.77%	4.33%	2.42%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kandi Technologies Group and JAKKS Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kandi Technologies Group	1	0	0	0	1.00
JAKKS Pacific	0	2	0	0	2.00

Valuation and Earnings

This table compares Kandi Technologies Group and JAKKS Pacific”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kandi Technologies Group	$87.44 million	0.72	-$93.88 million	($0.30)	-2.10
JAKKS Pacific	$570.67 million	0.51	$9.87 million	$1.39	18.30

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

Institutional and Insider Ownership

3.7% of Kandi Technologies Group shares are held by institutional investors. Comparatively, 44.4% of JAKKS Pacific shares are held by institutional investors. 16.8% of Kandi Technologies Group shares are held by company insiders. Comparatively, 4.2% of JAKKS Pacific shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Kandi Technologies Group has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, JAKKS Pacific has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

JAKKS Pacific beats Kandi Technologies Group on 10 of the 12 factors compared between the two stocks.

About Kandi Technologies Group

Kandi Technologies Group, Inc. engages in designing, developing, manufacturing, and commercializing electric vehicle (EV) products and parts in the People's Republic of China and the United States. It offers also off-road vehicles, including all-terrain vehicles, utility vehicles, go-karts, electric scooters, and electric self-balancing scooters, as well as related parts; and battery packs and smart battery swap system. The company was formerly known as Kandi Technologies, Corp. and changed its name to Kandi Technologies Group, Inc. in December 2012. Kandi Technologies Group, Inc. was founded in 2002 and is headquartered in Jinhua, the People's Republic of China.

About JAKKS Pacific

JAKKS Pacific, Inc. designs, produces, markets, sells, and distributes toys and related products, electronic products, and other consumer products worldwide. It operates through two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; junior sports toys, including hyper-charged balls, sport sets, and toy hoops; and board games. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was incorporated in 1995 and is headquartered in Santa Monica, California.