Head to Head Review: NEXON (NEXOY) vs. Its Competitors

NEXON (OTCMKTS:NEXOY) is one of 188 public companies in the “Entertainment” industry, but how does it compare to its peers? We will compare NEXON to similar companies based on the strength of its institutional ownership, risk, dividends, analyst recommendations, valuation, profitability and earnings.

Insider & Institutional Ownership

35.4% of shares of all “Entertainment” companies are owned by institutional investors. 23.8% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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	26.37%	12.45%	9.72%
NEXON Competitors	8.19%	-60.74%	-3.51%

Analyst Recommendations

This is a breakdown of recent ratings for NEXON and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXON	0	2	2	0	2.50
NEXON Competitors	1775	4371	9408	242	2.51

As a group, “Entertainment” companies have a potential upside of 22.74%. Given NEXON’s peers stronger consensus rating and higher probable upside, analysts plainly believe NEXON has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares NEXON and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NEXON	$3.18 billion	$616.75 million	20.43
NEXON Competitors	$4.13 billion	$74.78 million	13.63

NEXON’s peers have higher revenue, but lower 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.

Dividends

NEXON pays an annual dividend of C$0.26 per share and has a dividend yield of 1.1%. NEXON pays out 23.4% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 19.1% and pay out 78.7% of their earnings in the form of a dividend.

Summary

NEXON peers beat NEXON on 8 of the 14 factors compared.

NEXON Company Profile

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.