Hasbro (HAS) vs. JAKKS Pacific (JAKK) Financial Analysis

JAKKS Pacific (NASDAQ: JAKK) and Hasbro (NASDAQ:HAS) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitabiliy and risk.

Volatility & Risk

JAKKS Pacific has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Hasbro has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Institutional & Insider Ownership

67.2% of JAKKS Pacific shares are held by institutional investors. Comparatively, 79.3% of Hasbro shares are held by institutional investors. 5.2% of JAKKS Pacific shares are held by insiders. Comparatively, 11.0% of Hasbro shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Hasbro pays an annual dividend of $2.28 per share and has a dividend yield of 2.1%. JAKKS Pacific does not pay a dividend. Hasbro pays out 50.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for JAKKS Pacific and Hasbro, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JAKKS Pacific 0 7 0 0 2.00
Hasbro 0 8 5 0 2.38

JAKKS Pacific currently has a consensus price target of $5.42, indicating a potential upside of 38.89%. Hasbro has a consensus price target of $105.98, indicating a potential downside of 3.34%. Given JAKKS Pacific’s higher possible upside, analysts plainly believe JAKKS Pacific is more favorable than Hasbro.

Profitability

This table compares JAKKS Pacific and Hasbro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JAKKS Pacific 0.05% 0.26% 0.07%
Hasbro 11.34% 32.36% 12.02%

Valuation & Earnings

This table compares JAKKS Pacific and Hasbro’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
JAKKS Pacific $705.30 million 0.11 $38.55 million ($0.93) -4.19
Hasbro $5.04 billion 2.70 $969.57 million $4.50 24.36

Hasbro has higher revenue and earnings than JAKKS Pacific. JAKKS Pacific 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 JAKKS Pacific on 13 of the 15 factors compared between the two stocks.

JAKKS Pacific Company Profile

JAKKS Pacific, Inc. is a multi-line, multi-brand toy company. The Company designs, produces, markets and distributes toys and related products, pet toys, consumables and related products, electronics and related products, kids indoor and outdoor furniture, and other consumer products. The Company operates through two business segments: traditional toys and electronics, and role play, novelty and seasonal toys. The traditional toys and electronics segment includes action figures, vehicles, playsets, plush products, dolls, accessories, electronic products, construction toys, infant and pre-school toys, foot to floor ride-on vehicles, wagons and pet products and related products. The role play, novelty and seasonal segment includes role play and dress-up products, novelty toys, seasonal and outdoor products, indoor and outdoor kids’ furniture and Halloween and everyday costume play.

Hasbro Company Profile

Hasbro, Inc. (Hasbro) is a play and entertainment company. The Company’s operating segments include the U.S. and Canada, International, and Entertainment and Licensing. From toys and games to content development, including television programming, motion pictures, digital gaming and a consumer products licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. The Company’s U.S. and Canada segment is engaged in the marketing and sale of its products in the United States and Canada. The International segment is engaged in the marketing and sale of the Company’s product categories to retailers and wholesalers in most countries in Europe, Latin and South America, and the Asia Pacific region and through distributors in those countries where it has no direct presence. The Entertainment and Licensing segment includes the Company’s consumer products licensing, digital gaming, television and movie entertainment operations.

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