Critical Analysis: WEBTOON Entertainment (WBTN) and The Competition

WEBTOON Entertainment (NASDAQ:WBTN) is one of 255 publicly-traded companies in the “INTERNET SOFTWARE” industry, but how does it contrast to its competitors? We will compare WEBTOON Entertainment to similar businesses based on the strength of its valuation, profitability, institutional ownership, earnings, risk, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for WEBTOON Entertainment and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEBTOON Entertainment	0	2	5	0	2.71
WEBTOON Entertainment Competitors	1519	10038	19354	454	2.60

WEBTOON Entertainment presently has a consensus target price of $14.36, suggesting a potential upside of 71.76%. As a group, “INTERNET SOFTWARE” companies have a potential upside of 14.38%. Given WEBTOON Entertainment’s stronger consensus rating and higher possible upside, equities analysts plainly believe WEBTOON Entertainment is more favorable than its competitors.

Valuation & Earnings

This table compares WEBTOON Entertainment and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
WEBTOON Entertainment	$1.35 billion	-$143.90 million	-5.80
WEBTOON Entertainment Competitors	$2.17 billion	$335.71 million	0.36

WEBTOON Entertainment’s competitors have higher revenue and earnings than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

60.5% of shares of all “INTERNET SOFTWARE” companies are held by institutional investors. 18.0% of shares of all “INTERNET SOFTWARE” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares WEBTOON Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEBTOON Entertainment	-12.77%	1.23%	0.96%
WEBTOON Entertainment Competitors	-235.93%	-56.30%	-7.36%

WEBTOON Entertainment Company Profile

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.