Reviewing JAKKS Pacific (JAKK) and Its Competitors

JAKKS Pacific (NASDAQ:JAKK) is one of 95 publicly-traded companies in the “Leisure Products” industry, but how does it compare to its competitors? We will compare JAKKS Pacific to related companies based on the strength of its profitability, analyst recommendations, dividends, earnings, valuation, institutional ownership and risk.

Dividends

JAKKS Pacific pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. JAKKS Pacific pays out 71.9% of its earnings in the form of a dividend. As a group, “Leisure Products” companies pay a dividend yield of 2.8% and pay out 63.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for JAKKS Pacific and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JAKKS Pacific	0	2	0	0	2.00
JAKKS Pacific Competitors	514	2308	3734	177	2.53

As a group, “Leisure Products” companies have a potential upside of 5.52%. Given JAKKS Pacific’s competitors stronger consensus rating and higher possible upside, analysts plainly believe JAKKS Pacific has less favorable growth aspects than its competitors.

Risk & Volatility

JAKKS Pacific has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, JAKKS Pacific’s competitors have a beta of 0.97, suggesting that their average stock price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares JAKKS Pacific and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JAKKS Pacific	$570.67 million	$9.87 million	18.76
JAKKS Pacific Competitors	$2.98 billion	$71.31 million	527.90

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

Profitability

This table compares JAKKS Pacific and its competitors’ 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%
JAKKS Pacific Competitors	-7.89%	-14.53%	-2.40%

Institutional & Insider Ownership

44.4% of JAKKS Pacific shares are held by institutional investors. Comparatively, 44.5% of shares of all “Leisure Products” companies are held by institutional investors. 4.2% of JAKKS Pacific shares are held by insiders. Comparatively, 15.6% of shares of all “Leisure Products” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

JAKKS Pacific competitors beat JAKKS Pacific on 10 of the 15 factors compared.

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.