Critical Survey: Sega Sammy (SGAMY) versus Its Peers

Insider and Institutional Ownership

0.2% of Sega Sammy shares are held by institutional investors. Comparatively, 35.6% of shares of all “Entertainment” companies are held by institutional investors. 23.4% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sega Sammy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sega Sammy	N/A	N/A	N/A
Sega Sammy Competitors	8.87%	-62.58%	-3.30%

Valuation and Earnings

This table compares Sega Sammy and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sega Sammy	N/A	N/A	0.26
Sega Sammy Competitors	$4.52 billion	$76.31 million	12.26

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

Dividends

Sega Sammy pays an annual dividend of $0.05 per share and has a dividend yield of 1.1%. Sega Sammy pays out 0.3% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 19.3% and pay out 78.8% of their earnings in the form of a dividend.

Summary

Sega Sammy peers beat Sega Sammy on 6 of the 9 factors compared.

Sega Sammy Company Profile

Sega Sammy Holdings Inc., through its subsidiaries, engages in the game machine, entertainment content, and resort businesses. The company operates through Entertainment Contents, Pachislot and Pachinko Machines, and Resort segments. It develops Pachislot machines and provides machines for the pachinko business; offers entertainment-related content and services, including consumer and arcade games, toys, and animation, as well as develops and sells amusement machines and animated films; and develops and operates hotels, entertainment and commercial facilities, and casinos. The company was founded in 2004 and is based in Tokyo, Japan.