Financial Contrast: International Game Technology (IGT) vs. Its Rivals

International Game Technology (NYSE: IGT) is one of 10 public companies in the “Miscellaneous amusement & recreation services” industry, but how does it weigh in compared to its competitors? We will compare International Game Technology to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, earnings, dividends, profitability and valuation.

Earnings & Valuation

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This table compares International Game Technology and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
International Game Technology $4.94 billion -$1.07 billion 17.59
International Game Technology Competitors $1.27 billion -$65.07 million 2.70

International Game Technology has higher revenue, but lower earnings than its competitors. International Game Technology is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

International Game Technology pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. International Game Technology pays out 52.6% of its earnings in the form of a dividend. As a group, “Miscellaneous amusement & recreation services” companies pay a dividend yield of 3.6% and pay out 103.4% of their earnings in the form of a dividend.

Profitability

This table compares International Game Technology and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Game Technology -21.64% 10.28% 2.14%
International Game Technology Competitors -24.56% 167.69% -4.07%

Risk & Volatility

International Game Technology has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, International Game Technology’s competitors have a beta of 0.78, indicating that their average share price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

40.7% of International Game Technology shares are held by institutional investors. Comparatively, 61.3% of shares of all “Miscellaneous amusement & recreation services” companies are held by institutional investors. 1.2% of International Game Technology shares are held by company insiders. Comparatively, 13.3% of shares of all “Miscellaneous amusement & recreation services” companies are held by company 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for International Game Technology and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Game Technology 0 1 5 0 2.83
International Game Technology Competitors 60 264 483 9 2.54

International Game Technology presently has a consensus target price of $31.25, suggesting a potential upside of 16.91%. As a group, “Miscellaneous amusement & recreation services” companies have a potential upside of 5.19%. Given International Game Technology’s stronger consensus rating and higher probable upside, analysts clearly believe International Game Technology is more favorable than its competitors.

Summary

International Game Technology beats its competitors on 9 of the 15 factors compared.

About International Game Technology

International Game Technology (IGT) is a global gaming company specializing in the design, development, manufacture, and marketing of casino-style gaming equipment, systems technology, and game content across multiple platforms: land-based, online real-money and social gaming. The Company is a supplier of gaming entertainment products worldwide. IGT operates in two segments: North America and International. North America consists of the Company’s operations in the United States and Canada, which comprised 78% of the revenue during the fiscal year ended September 30, 2013 (fiscal 2013). International consists of its operations in all other jurisdictions worldwide, which consists of 22% of the consolidated revenues in fiscal 2013. The Company recognized revenues in three categories, which includes Gaming Operations, Product Sales and Interactive.

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