Hasbro (NASDAQ:HAS) versus Summer Infant (SUMR) Critical Comparison

Summer Infant (NASDAQ: SUMR) and Hasbro (NASDAQ:HAS) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Summer Infant and Hasbro, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summer Infant 0 0 2 0 3.00
Hasbro 0 8 5 0 2.38

Summer Infant presently has a consensus price target of $2.75, indicating a potential upside of 41.03%. Hasbro has a consensus price target of $106.90, indicating a potential upside of 11.92%. Given Summer Infant’s stronger consensus rating and higher possible upside, research analysts plainly believe Summer Infant is more favorable than Hasbro.

Institutional and Insider Ownership

50.0% of Summer Infant shares are owned by institutional investors. Comparatively, 79.2% of Hasbro shares are owned by institutional investors. 8.4% of Summer Infant shares are owned by insiders. Comparatively, 11.0% of Hasbro shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Summer Infant and Hasbro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summer Infant -1.82% 0.56% 0.09%
Hasbro 11.44% 32.24% 11.99%

Volatility and Risk

Summer Infant has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500. Comparatively, Hasbro has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Earnings and Valuation

This table compares Summer Infant and Hasbro’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Summer Infant $194.00 million 0.19 $4.68 million ($0.19) -10.26
Hasbro $5.13 billion 2.33 $989.99 million $4.62 20.67

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

Dividends

Hasbro pays an annual dividend of $2.28 per share and has a dividend yield of 2.4%. Summer Infant does not pay a dividend. Hasbro pays out 49.4% of its earnings in the form of a dividend.

Summary

Hasbro beats Summer Infant on 12 of the 16 factors compared between the two stocks.

About Summer Infant

Summer Infant, Inc. is an infant and juvenile products company. The Company is engaged in the juvenile industry, providing mothers and caregivers a range of products to care for babies and toddlers. As of December 31, 2016, it marketed over 1,100 products in several product categories, including monitoring, safety, nursery, baby gear and feeding products. It markets its products, under its Summer Infant, SwaddleMe and Born Free brand names. Its anchor products in its product categories include monitoring, such as wireless fidelity (Wi-Fi)/Internet, video, audio and prenatal; safety, including gates, bath, potties, boosters and positioners; nursery, such as swaddle, travel accessories, safe sleep, soothers and sleep aides; baby gear, including strollers, bassinets, high chairs and playards, and feeding products, such as bottles, drinking cups, bibs and placemats, electronics and pacifiers. It sells its products across the globe to national retailers, as well as independent retailers.

About Hasbro

Hasbro, Inc. (Hasbro) is a play and entertainment company. The Company’s operating segments include the U.S. and Canada, International, and Entertainment and Licensing. From toys and games to content development, including television programming, motion pictures, digital gaming and a consumer products licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. The Company’s U.S. and Canada segment is engaged in the marketing and sale of its products in the United States and Canada. The International segment is engaged in the marketing and sale of the Company’s product categories to retailers and wholesalers in most countries in Europe, Latin and South America, and the Asia Pacific region and through distributors in those countries where it has no direct presence. The Entertainment and Licensing segment includes the Company’s consumer products licensing, digital gaming, television and movie entertainment operations.

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