Reviewing Square Enix (SQNXF) and Its Competitors

Square Enix (OTCMKTS:SQNXF) is one of 71 public companies in the “INTERNET SERVICES” industry, but how does it weigh in compared to its rivals? We will compare Square Enix to related companies based on the strength of its earnings, valuation, profitability, risk, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Square Enix and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Square Enix	$2.13 billion	$161.13 million	56.82
Square Enix Competitors	$17.62 billion	$4.48 billion	5.35

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

Profitability

This table compares Square Enix and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Square Enix	7.45%	7.72%	6.14%
Square Enix Competitors	-16.13%	-15.99%	0.94%

Risk and Volatility

Square Enix has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Square Enix’s rivals have a beta of 2.65, meaning that their average stock price is 165% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Square Enix and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Square Enix	1	0	0	0	1.00
Square Enix Competitors	563	2431	5624	220	2.62

As a group, “INTERNET SERVICES” companies have a potential upside of 14.95%. Given Square Enix’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Square Enix has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

42.1% of shares of all “INTERNET SERVICES” companies are owned by institutional investors. 23.3% of shares of all “INTERNET SERVICES” companies are owned by 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.

Summary

Square Enix rivals beat Square Enix on 9 of the 13 factors compared.

About Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, Japan.