Critical Review: Hasbro (HAS) & The Competition

Hasbro (NASDAQ:HAS) is one of 95 publicly-traded companies in the “Leisure Products” industry, but how does it weigh in compared to its peers? We will compare Hasbro to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Dividends

Hasbro pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Hasbro pays out 41.9% of its earnings in the form of a dividend. As a group, “Leisure Products” companies pay a dividend yield of 2.9% and pay out 55.3% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hasbro	18.44%	140.60%	17.09%
Hasbro Competitors	-8.21%	-18.19%	-3.85%

Risk and Volatility

Hasbro has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Hasbro’s peers have a beta of 1.20, indicating that their average share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Hasbro and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hasbro	0	2	13	1	2.94
Hasbro Competitors	564	2387	3812	188	2.52

Hasbro currently has a consensus price target of $114.93, suggesting a potential downside of 3.86%. As a group, “Leisure Products” companies have a potential upside of 26.88%. Given Hasbro’s peers higher possible upside, analysts plainly believe Hasbro has less favorable growth aspects than its peers.

Insider and Institutional Ownership

91.8% of Hasbro shares are held by institutional investors. Comparatively, 45.3% of shares of all “Leisure Products” companies are held by institutional investors. 0.7% of Hasbro shares are held by company insiders. Comparatively, 14.8% 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 stock will outperform the market over the long term.

Earnings & Valuation

This table compares Hasbro and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hasbro	$4.70 billion	-$322.40 million	17.87
Hasbro Competitors	$3.02 billion	$72.16 million	576.40

Hasbro has higher revenue, but lower earnings than its peers. Hasbro is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Hasbro beats its peers on 9 of the 15 factors compared.

About Hasbro

Hasbro, Inc., together with its subsidiaries, operates as a toy and game company in the United States, Europe, Canada, Mexico, Latin America, Australia, China, and Hong Kong. The company operates through Consumer Products; Wizards of the Coast and Digital Gaming; Entertainment; and Corporate and Other segments. The Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. This segment also promotes its brands through the out-licensing of trademarks, characters, and other brand and intellectual property rights to third parties through the sale of branded consumer products, such as toys and apparel. Its toys and games include action figures, arts and crafts and creative play products, dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, games, and other consumer products; and licensed products, such as apparel, publishing products, home goods and electronics, and toy products. The Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading cards, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. The Entertainment segment engages in the development, production, and sale of entertainment content, including film, television, children's programming, digital content, and live entertainment. The company sells its products to retailers, distributors, wholesalers, discount stores, specialty hobby stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as e-commerce retailers; and directly to customers through its e-commerce websites under the MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, PEPPA PIG, and other brand names. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.