Contrasting Yamaha (OTCMKTS:YAMCY) & JAKKS Pacific (NASDAQ:JAKK)

JAKKS Pacific (NASDAQ:JAKK) and Yamaha (OTCMKTS:YAMCY) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Institutional & Insider Ownership

44.4% of JAKKS Pacific shares are owned by institutional investors. 4.2% of JAKKS Pacific shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

JAKKS Pacific pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Yamaha pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. JAKKS Pacific pays out 71.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares JAKKS Pacific and Yamaha”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JAKKS Pacific	$570.67 million	0.51	$9.87 million	$1.39	18.42
Yamaha	N/A	N/A	N/A	N/A	N/A

JAKKS Pacific has higher revenue and earnings than Yamaha.

Profitability

This table compares JAKKS Pacific and Yamaha’s 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%
Yamaha	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for JAKKS Pacific and Yamaha, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JAKKS Pacific	0	2	0	0	2.00
Yamaha	0	1	0	0	2.00

Summary

JAKKS Pacific beats Yamaha on 7 of the 8 factors compared between the two stocks.

About JAKKS Pacific

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.

About Yamaha

Yamaha Corporation, together with its subsidiaries, engages in the musical instruments, audio equipment, and other businesses in Japan and internationally. It manufactures and sells pianos; guitars; keyboards; strings; basses and amps; brass and woodwinds; marching instruments; drums; percussion instruments; music production tools; audio and visual products; and professional audio equipment under the Bösendorfer, Steinberg, Line 6, Ampeg, and Nexo brands. The company also provides acoustic design, unified communication devices, electronic devices, automotive sound system, automobile interior components, factory automation equipment, and golf products. In addition, it is involved in the music schools and resort business. The company was founded in 1887 and is headquartered in Hamamatsu, Japan.