Head-To-Head Survey: Shimano (OTCMKTS:SMNNY) versus JAKKS Pacific (NASDAQ:JAKK)

Shimano (OTCMKTS:SMNNY) and JAKKS Pacific (NASDAQ:JAKK) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Dividends

Shimano pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. JAKKS Pacific pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Shimano pays out 28.6% of its earnings in the form of a dividend. JAKKS Pacific pays out 71.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

0.0% of Shimano shares are owned by institutional investors. Comparatively, 44.4% of JAKKS Pacific shares are owned by institutional investors. 4.2% of JAKKS Pacific shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Shimano and JAKKS Pacific”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shimano	$3.12 billion	3.44	$227.74 million	$0.42	29.50
JAKKS Pacific	$570.67 million	0.51	$9.87 million	$1.39	18.29

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

Analyst Ratings

This is a summary of current ratings for Shimano and JAKKS Pacific, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shimano	0	0	0	0	0.00
JAKKS Pacific	0	2	0	0	2.00

Profitability

This table compares Shimano and JAKKS Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shimano	12.18%	5.24%	4.85%
JAKKS Pacific	2.77%	4.33%	2.42%

Volatility & Risk

Shimano has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, JAKKS Pacific has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Summary

Shimano beats JAKKS Pacific on 8 of the 14 factors compared between the two stocks.

About Shimano

Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.

About JAKKS Pacific

JAKKS Pacific, Inc. designs, produces, markets, sells, and distributes toys and related products, electronic products, and other consumer products worldwide. It operates through two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; junior sports toys, including hyper-charged balls, sport sets, and toy hoops; and board games. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was incorporated in 1995 and is headquartered in Santa Monica, California.