Reviewing NEXON (NEXOY) and Its Rivals

NEXON (OTCMKTS:NEXOY) is one of 186 publicly-traded companies in the “Entertainment” industry, but how does it compare to its peers? We will compare NEXON to similar companies based on the strength of its analyst recommendations, institutional ownership, profitability, risk, valuation, dividends and earnings.

Insider and Institutional Ownership

35.7% of shares of all “Entertainment” companies are held by institutional investors. 23.6% of shares of all “Entertainment” companies are held by 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 NEXON and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NEXON	26.37%	12.45%	9.72%
NEXON Competitors	9.02%	-62.36%	-3.32%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for NEXON and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXON	0	2	2	0	2.50
NEXON Competitors	1801	4406	9452	244	2.51

As a group, “Entertainment” companies have a potential upside of 19.98%. Given NEXON’s peers stronger consensus rating and higher probable upside, analysts clearly believe NEXON has less favorable growth aspects than its peers.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
NEXON	$3.18 billion	$616.75 million	18.12
NEXON Competitors	$4.14 billion	$76.31 million	12.57

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

Dividends

NEXON pays an annual dividend of C$0.13 per share and has a dividend yield of 0.6%. NEXON pays out 11.7% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 18.0% and pay out 78.4% of their earnings in the form of a dividend.

Summary

NEXON peers beat NEXON on 8 of the 14 factors compared.

NEXON Company Profile

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.