Comparing Mattel (NASDAQ:MAT) and Panasonic (OTCMKTS:PCRFY)

Panasonic (OTCMKTS:PCRFY) and Mattel (NASDAQ:MAT) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Panasonic and Mattel”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Panasonic	$62.02 billion	0.35	$1.96 billion	$1.54	6.08
Mattel	$5.35 billion	0.82	$397.58 million	$1.36	11.22

Panasonic has higher revenue and earnings than Mattel. Panasonic is trading at a lower price-to-earnings ratio than Mattel, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Panasonic has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Mattel has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Insider & Institutional Ownership

9.4% of Panasonic shares are held by institutional investors. Comparatively, 97.2% of Mattel shares are held by institutional investors. 1.0% of Panasonic shares are held by insiders. Comparatively, 1.9% of Mattel shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Panasonic and Mattel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Panasonic	5.96%	12.00%	5.82%
Mattel	7.79%	16.20%	5.37%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Panasonic and Mattel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Panasonic	0	1	0	0	2.00
Mattel	3	5	5	1	2.29

Mattel has a consensus price target of $17.80, suggesting a potential upside of 16.64%. Given Mattel’s stronger consensus rating and higher possible upside, analysts plainly believe Mattel is more favorable than Panasonic.

Summary

Mattel beats Panasonic on 10 of the 15 factors compared between the two stocks.

About Panasonic

Panasonic Holdings Corporation, together with its subsidiaries, research, develops, manufactures, sells, and services various electrical and electronic products worldwide. It operates through five segments: Lifestyle, Automotive, Connect, Industry, and Energy. The Lifestyle segment offers refrigerators, microwave ovens, rice cookers, washing machines, lighting fixtures, vacuum cleaners, air-conditioners, air to water heat pump system, air purifiers/sterilizers, and freezing or refrigerating showcases, as well as ventilation and perflation equipment. This segment also provides personal-care products; lamps, wiring devices, solar photovoltaic systems, fuel cells, and compressors; bicycles; and nursing care services. The Automotive segment offers infotainment systems, head-up displays, automotive speakers and switches, advanced driver assistance systems, and related devices, as well as systems and devices for xEVs and interior rearview mirrors. The Connect segment provides aircraft in-flight entertainment systems and communications services; electronic components-mounting machines; welding equipment; projectors; professional AV systems; PCs and tablets; solutions for various industries; installation/operation/ maintenance services; and supply chain management software. The Industry segment offers relays, switches, power supply products, touch panels, motors, sensors, laser markers, capacitors, inductors, resistors, circuit board materials, semiconductor device materials, molding compounds, and LCD panels. The Energy segment provides dry, primary/secondary lithium, nickel-metal hydride, and lithium-ion batteries; and cylindrical lithium-ion batteries for in-vehicle use, as well as storage battery modules and systems. It also offers digital cameras, video and audio equipment, television, telephones, and intercoms. The company was formerly known as Panasonic Corporation. Panasonic Holdings Corporation was founded in 1918 and is headquartered in Kadoma, Japan.

About Mattel

Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.