Head to Head Review: NEXON (NEXOF) and The Competition

Dividends

NEXON pays an annual dividend of $7.98 per share and has a dividend yield of 57.3%. NEXON pays out 12.1% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 19.2% and pay out 79.0% of their earnings in the form of a dividend. NEXON is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NEXON	N/A	N/A	N/A
NEXON Competitors	10.40%	-3.84%	-3.26%

Valuation & Earnings

This table compares NEXON and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NEXON	N/A	N/A	0.21
NEXON Competitors	$4.09 billion	$74.17 million	-6.05

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

Institutional & Insider Ownership

11.1% of NEXON shares are owned by institutional investors. Comparatively, 35.6% of shares of all “Entertainment” companies are owned by institutional investors. 24.2% of shares of all “Entertainment” companies are owned by 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.

Summary

NEXON beats its peers on 5 of the 9 factors compared.

About NEXON

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company’s PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.