Analyzing JAKKS Pacific (JAKK) and Its Rivals

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

Analyst Ratings

This is a summary of recent ratings and target prices for JAKKS Pacific and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JAKKS Pacific	0	2	0	0	2.00
JAKKS Pacific Competitors	520	2320	3741	178	2.53

As a group, “Leisure Products” companies have a potential upside of 7.08%. Given JAKKS Pacific’s rivals stronger consensus rating and higher possible upside, analysts clearly believe JAKKS Pacific has less favorable growth aspects than its rivals.

Dividends

JAKKS Pacific pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. JAKKS Pacific pays out 71.9% of its earnings in the form of a dividend. As a group, “Leisure Products” companies pay a dividend yield of 2.5% and pay out 56.4% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares JAKKS Pacific and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JAKKS Pacific	$570.67 million	$9.87 million	18.13
JAKKS Pacific Competitors	$3.08 billion	$74.62 million	523.38

JAKKS Pacific’s rivals have higher revenue and earnings than JAKKS Pacific. JAKKS Pacific is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares JAKKS Pacific and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JAKKS Pacific	2.77%	4.33%	2.42%
JAKKS Pacific Competitors	-7.90%	-14.51%	-2.35%

Volatility and Risk

JAKKS Pacific has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, JAKKS Pacific’s rivals have a beta of 0.97, suggesting that their average share price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

44.4% of JAKKS Pacific shares are owned by institutional investors. Comparatively, 44.5% of shares of all “Leisure Products” companies are owned by institutional investors. 4.2% of JAKKS Pacific shares are owned by company insiders. Comparatively, 15.6% of shares of all “Leisure Products” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

JAKKS Pacific rivals beat JAKKS Pacific on 10 of the 15 factors compared.

JAKKS Pacific Company Profile

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.