Head to Head Analysis: NEXON (NEXOY) vs. Its Peers

NEXON (OTCMKTS:NEXOY) is one of 188 publicly-traded companies in the “Entertainment” industry, but how does it compare to its rivals? We will compare NEXON to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, valuation, risk and earnings.

Dividends

NEXON pays an annual dividend of C$0.26 per share and has a dividend yield of 1.7%. NEXON pays out 25.7% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 19.2% and pay out 78.7% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares NEXON and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NEXON	$3.18 billion	$616.75 million	15.29
NEXON Competitors	$4.56 billion	$74.17 million	-5.95

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for NEXON and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXON	0	2	2	0	2.50
NEXON Competitors	1763	4357	9384	239	2.51

As a group, “Entertainment” companies have a potential upside of 24.32%. Given NEXON’s rivals stronger consensus rating and higher possible upside, analysts clearly believe NEXON has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

35.4% of shares of all “Entertainment” companies are held by institutional investors. 23.8% 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 will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NEXON	23.82%	11.39%	9.01%
NEXON Competitors	10.40%	-3.69%	-2.96%

Summary

NEXON rivals 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.