NINTENDO LTD/ADR (OTCMKTS:NTDOY) and Hasbro (NASDAQ:HAS) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
This table compares NINTENDO LTD/ADR and Hasbro’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for NINTENDO LTD/ADR and Hasbro, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hasbro has a consensus target price of $105.33, indicating a potential upside of 15.75%. Given Hasbro’s stronger consensus rating and higher possible upside, analysts clearly believe Hasbro is more favorable than NINTENDO LTD/ADR.
NINTENDO LTD/ADR pays an annual dividend of $0.41 per share and has a dividend yield of 1.1%. Hasbro pays an annual dividend of $2.52 per share and has a dividend yield of 2.8%. NINTENDO LTD/ADR pays out 31.1% of its earnings in the form of a dividend. Hasbro pays out 46.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hasbro has raised its dividend for 8 consecutive years. Hasbro is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
NINTENDO LTD/ADR has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Hasbro has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Valuation & Earnings
This table compares NINTENDO LTD/ADR and Hasbro’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NINTENDO LTD/ADR||$9.74 billion||3.73||$1.26 billion||$1.32||28.69|
|Hasbro||$5.21 billion||2.21||$396.60 million||$5.46||16.67|
NINTENDO LTD/ADR has higher revenue and earnings than Hasbro. Hasbro is trading at a lower price-to-earnings ratio than NINTENDO LTD/ADR, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
0.2% of NINTENDO LTD/ADR shares are owned by institutional investors. Comparatively, 82.3% of Hasbro shares are owned by institutional investors. 9.9% of Hasbro shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Hasbro beats NINTENDO LTD/ADR on 10 of the 17 factors compared between the two stocks.
NINTENDO LTD/ADR Company Profile
Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells electronic entertainment products in Japan, the United States, Europe, Australia, Asia, and internationally. It provides video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is based in Kyoto, Japan.
Hasbro Company Profile
Hasbro, Inc., together with its subsidiaries, operates as a play and entertainment company. The company's U.S. and Canada segment markets and sells action figures, arts and crafts, and creative play products; electronic toys and related electronic interactive products; fashion and other dolls, infant products, play sets, preschool toys, plush products, and sports action blasters and accessories; and vehicles and toy-related specialty products, as well as traditional board games, and trading card and role-playing games primarily in the United States and Canada. Its International segment markets and sells toy and game products primarily in the European, the Asia Pacific, and Latin and South American regions. The company's Entertainment and Licensing segment engages in consumer products licensing, digital gaming, and movie and television entertainment operations. The company sells its products to wholesalers, distributors, chain stores, discount stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as Internet-based e-tailers. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.
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