Critical Analysis: Games Workshop Group (GMWKF) and Its Peers

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

Insider & Institutional Ownership

63.2% of Games Workshop Group shares are held by institutional investors. Comparatively, 44.5% of shares of all “Leisure Products” companies are held by institutional investors. 15.6% of shares of all “Leisure Products” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Games Workshop Group and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Games Workshop Group	0	0	1	0	3.00
Games Workshop Group Competitors	523	2323	3751	178	2.53

As a group, “Leisure Products” companies have a potential upside of 6.43%. Given Games Workshop Group’s rivals higher probable upside, analysts plainly believe Games Workshop Group has less favorable growth aspects than its rivals.

Profitability

This table compares Games Workshop Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Games Workshop Group	N/A	N/A	N/A
Games Workshop Group Competitors	-7.84%	-14.40%	-2.28%

Dividends

Games Workshop Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Games Workshop Group pays out 163.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Games Workshop Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Games Workshop Group and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Games Workshop Group	N/A	N/A	1,173.72
Games Workshop Group Competitors	$2.99 billion	$74.62 million	523.45

Games Workshop Group’s rivals have higher revenue and earnings than Games Workshop Group. Games Workshop Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Games Workshop Group beats its rivals on 7 of the 13 factors compared.

About Games Workshop Group

Games Workshop Group PLC, together with its subsidiaries, designs, manufactures, distributes, and sells miniature figures and games in the United Kingdom, Continental Europe, North America, Australia, New Zealand, Asia, and internationally. It operates in two segments, Core and Licensing. The company offers games under the Warhammer: Age of Sigmar, Necromunda, and Warhammer 40,000 names, as well as Horus Heresy and Blood Bowl. It also publishes short stories, audio dramas, full length novels, and audio books under the Black Library name; and develops digital content for animation and TV. In addition, the company provides painting and modelling products, boxed games, and gifts; and engages in the newsstand and trustee businesses. It offers its products through its retail stores, social media sites, and warhammer-community.com; and physical bookstores, third party online platforms, and other retail and specialist stores. Games The company was incorporated in 1991 and is headquartered in Nottingham, the United Kingdom.