Analyzing Mattel (MAT) and Its Peers

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

Risk & Volatility

Mattel has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Mattel’s rivals have a beta of 1.24, indicating that their average share price is 24% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mattel	7.79%	16.20%	5.37%
Mattel Competitors	-8.44%	-18.53%	-3.95%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Mattel and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mattel	3	4	5	1	2.31
Mattel Competitors	563	2385	3809	188	2.52

Mattel presently has a consensus price target of $18.00, indicating a potential upside of 16.24%. As a group, “Leisure Products” companies have a potential upside of 27.28%. Given Mattel’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Mattel has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Mattel and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mattel	$5.35 billion	$397.58 million	11.39
Mattel Competitors	$3.02 billion	$72.16 million	575.48

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

Institutional and Insider Ownership

97.2% of Mattel shares are owned by institutional investors. Comparatively, 45.3% of shares of all “Leisure Products” companies are owned by institutional investors. 1.9% of Mattel shares are owned by company insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Mattel beats its rivals on 7 of the 13 factors compared.

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.