Financial Comparison: JAKKS Pacific (JAKK) and The Competition

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

Earnings & Valuation

This table compares JAKKS Pacific and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JAKKS Pacific	$570.67 million	$9.87 million	18.76
JAKKS Pacific Competitors	$2.98 billion	$71.31 million	527.90

JAKKS Pacific’s peers have higher revenue and earnings than JAKKS Pacific. JAKKS Pacific is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

44.4% of JAKKS Pacific shares are held by institutional investors. Comparatively, 44.5% of shares of all “Leisure Products” companies are held by institutional investors. 4.2% of JAKKS Pacific shares are held by company insiders. Comparatively, 15.6% of shares of all “Leisure Products” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares JAKKS Pacific and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JAKKS Pacific	2.77%	4.33%	2.42%
JAKKS Pacific Competitors	-7.89%	-14.53%	-2.40%

Analyst Ratings

This is a breakdown of current recommendations for JAKKS Pacific and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JAKKS Pacific	0	2	0	0	2.00
JAKKS Pacific Competitors	514	2308	3734	177	2.53

As a group, “Leisure Products” companies have a potential upside of 5.52%. Given JAKKS Pacific’s peers stronger consensus rating and higher probable upside, analysts clearly believe JAKKS Pacific has less favorable growth aspects than its peers.

Dividends

JAKKS Pacific pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. JAKKS Pacific pays out 71.9% of its earnings in the form of a dividend. As a group, “Leisure Products” companies pay a dividend yield of 2.8% and pay out 63.7% of their earnings in the form of a dividend.

Risk & Volatility

JAKKS Pacific has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, JAKKS Pacific’s peers have a beta of 0.97, indicating that their average share price is 3% less volatile than the S&P 500.

Summary

JAKKS Pacific peers beat JAKKS Pacific on 10 of the 15 factors compared.

JAKKS Pacific Company Profile

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.