Critical Analysis: Aristocrat Leisure (ARLUF) versus The Competition

Aristocrat Leisure (OTCMKTS:ARLUF) is one of 385 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its rivals? We will compare Aristocrat Leisure to related companies based on the strength of its valuation, earnings, dividends, profitability, institutional ownership, risk and analyst recommendations.

Earnings & Valuation

This table compares Aristocrat Leisure and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Aristocrat Leisure	N/A	N/A	-1,593.10
Aristocrat Leisure Competitors	$3.33 billion	$245.62 million	10.81

Aristocrat Leisure’s rivals have higher revenue and earnings than Aristocrat Leisure. Aristocrat Leisure 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.

Institutional & Insider Ownership

23.8% of Aristocrat Leisure shares are owned by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 21.9% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Aristocrat Leisure and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aristocrat Leisure	0	0	1	0	3.00
Aristocrat Leisure Competitors	3666	16763	24765	859	2.50

Aristocrat Leisure currently has a consensus target price of $58.00, indicating a potential upside of 25.54%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 79.43%. Given Aristocrat Leisure’s rivals higher possible upside, analysts clearly believe Aristocrat Leisure has less favorable growth aspects than its rivals.

Profitability

This table compares Aristocrat Leisure and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aristocrat Leisure	N/A	N/A	N/A
Aristocrat Leisure Competitors	-9.44%	-36.77%	1.90%

Dividends

Aristocrat Leisure pays an annual dividend of $0.15 per share and has a dividend yield of 0.3%. Aristocrat Leisure pays out -534.5% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.4% and pay out 45.4% of their earnings in the form of a dividend.

Summary

Aristocrat Leisure rivals beat Aristocrat Leisure on 8 of the 13 factors compared.

Aristocrat Leisure Company Profile

Aristocrat Leisure Limited, together with its subsidiaries, operates as a gaming content and technology company in Australia and internationally. The company designs, develops, assembles, distributes, sells, and services gaming content, platforms, and systems, including electronic gaming machines, casino management systems, and free-to-play mobile games. It also offers pixel united, a mobile-first games powerhouse; aristocrat gaming, a gaming content; and Anaxi, an immersive and interactive digital entertainment experience content. In addition, the company provides online money gaming services; and cabinets and gaming products. Aristocrat Leisure Limited was founded in 1950 and is headquartered in North Ryde, Australia.