Financial Review: Hasbro (NASDAQ:HAS) versus Li Ning (OTCMKTS:LNNGF)

Hasbro (NASDAQ:HAS) and Li Ning (OTCMKTS:LNNGF) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Hasbro and Li Ning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hasbro	15.97%	141.11%	14.72%
Li Ning	N/A	N/A	N/A

Insider and Institutional Ownership

91.8% of Hasbro shares are owned by institutional investors. Comparatively, 20.9% of Li Ning shares are owned by institutional investors. 0.7% of Hasbro shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Hasbro and Li Ning, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hasbro	0	4	12	0	2.75
Li Ning	0	0	0	0	0.00

Hasbro presently has a consensus price target of $109.07, suggesting a potential upside of 12.79%. Given Hasbro’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hasbro is more favorable than Li Ning.

Earnings and Valuation

This table compares Hasbro and Li Ning”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hasbro	$4.97 billion	2.74	-$322.40 million	$5.56	17.39
Li Ning	N/A	N/A	N/A	($0.56)	-2.92

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

Summary

Hasbro beats Li Ning on 11 of the 11 factors compared between the two stocks.

About Hasbro

Hasbro, Inc., together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments. The Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. This segment also promotes its brands through the out-licensing of trademarks, characters, and other brand and intellectual property rights to third parties through the sale of branded consumer products, such as toys and apparel. Its toys and games include action figures, arts and crafts and creative play products, dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games, and other consumer products; and licensed products, such as apparel, publishing products, home goods and electronics, and toy products. The Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading cards, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, production, and sale of entertainment content, including film, television, children's programming, digital content, and live entertainment. The company sells its products to retailers, distributors, wholesalers, discount stores, specialty hobby stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as e-commerce retailers; and directly to customers through its e-commerce websites under the MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PEPPA PIG, and other brand names. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People's Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People's Republic of China.