Mattel (MAT) and Its Rivals Head-To-Head Comparison

Mattel (NASDAQ:MAT) is one of 95 public companies in the “Leisure Products” industry, but how does it compare to its peers? We will compare Mattel to similar companies based on the strength of its earnings, risk, valuation, analyst recommendations, profitability, institutional ownership and dividends.

Institutional and Insider Ownership

97.2% of Mattel shares are held by institutional investors. Comparatively, 45.3% of shares of all “Leisure Products” companies are held by institutional investors. 1.9% of Mattel shares are held by company insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies 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.

Profitability

This table compares Mattel and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mattel	7.79%	16.20%	5.37%
Mattel Competitors	-8.42%	-18.61%	-3.97%

Dividends

Mattel pays an annual dividend of $0.60 per share and has a dividend yield of 3.9%. Mattel pays out 44.1% of its earnings in the form of a dividend. As a group, “Leisure Products” companies pay a dividend yield of 2.9% and pay out 55.5% of their earnings in the form of a dividend. Mattel is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility & Risk

Mattel has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Mattel’s peers have a beta of 1.21, indicating that their average stock price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mattel and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mattel	$5.49 billion	$397.58 million	11.36
Mattel Competitors	$2.95 billion	$72.16 million	571.89

Mattel has higher revenue and earnings than its peers. Mattel is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Mattel and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mattel	3	4	5	1	2.31
Mattel Competitors	559	2377	3800	186	2.52

Mattel presently has a consensus price target of $18.00, indicating a potential upside of 16.47%. As a group, “Leisure Products” companies have a potential upside of 25.44%. Given Mattel’s peers stronger consensus rating and higher possible upside, analysts clearly believe Mattel has less favorable growth aspects than its peers.

Summary

Mattel beats its peers on 9 of the 15 factors compared.

Mattel Company Profile

Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.