Shimano (OTCMKTS:SMNNY) versus JAKKS Pacific (NASDAQ:JAKK) Critical Comparison

JAKKS Pacific (NASDAQ:JAKK) and Shimano (OTCMKTS:SMNNY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Dividends

JAKKS Pacific pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. Shimano pays an annual dividend of $0.06 per share and has a dividend yield of 0.5%. JAKKS Pacific pays out 71.9% of its earnings in the form of a dividend. Shimano pays out 14.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for JAKKS Pacific and Shimano, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JAKKS Pacific	0	2	0	0	2.00
Shimano	0	0	0	0	0.00

Volatility and Risk

JAKKS Pacific has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Shimano has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

44.4% of JAKKS Pacific shares are owned by institutional investors. Comparatively, 0.0% of Shimano shares are owned by institutional investors. 4.2% of JAKKS Pacific shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares JAKKS Pacific and Shimano’s 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%
Shimano	12.18%	5.28%	4.88%

Earnings and Valuation

This table compares JAKKS Pacific and Shimano”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JAKKS Pacific	$570.67 million	0.50	$9.87 million	$1.39	17.78
Shimano	$3.12 billion	3.40	$227.74 million	$0.42	29.21

Shimano has higher revenue and earnings than JAKKS Pacific. JAKKS Pacific is trading at a lower price-to-earnings ratio than Shimano, indicating that it is currently the more affordable of the two stocks.

Summary

Shimano beats JAKKS Pacific on 8 of the 14 factors compared between the two stocks.

About JAKKS Pacific

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.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.