Financial Analysis: Hasbro (HAS) vs. NINTENDO LTD/ADR (NTDOY)

Hasbro (NASDAQ:HAS) and NINTENDO LTD/ADR (OTCMKTS:NTDOY) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Dividends

Hasbro pays an annual dividend of $2.52 per share and has a dividend yield of 3.0%. NINTENDO LTD/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 1.5%. Hasbro pays out 46.2% of its earnings in the form of a dividend. NINTENDO LTD/ADR pays out 41.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hasbro has increased its dividend for 8 consecutive years. Hasbro is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Hasbro and NINTENDO LTD/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hasbro 4.31% 34.61% 11.84%
NINTENDO LTD/ADR 14.20% 11.46% 9.09%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hasbro and NINTENDO LTD/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hasbro 1 5 9 0 2.53
NINTENDO LTD/ADR 0 1 1 0 2.50

Hasbro presently has a consensus price target of $105.33, suggesting a potential upside of 25.50%. Given Hasbro’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hasbro is more favorable than NINTENDO LTD/ADR.

Risk & Volatility

Hasbro has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, NINTENDO LTD/ADR has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership

86.2% of Hasbro shares are owned by institutional investors. Comparatively, 0.2% of NINTENDO LTD/ADR shares are owned by institutional investors. 9.9% of Hasbro shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Hasbro and NINTENDO LTD/ADR’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hasbro $5.21 billion 2.04 $396.60 million $5.46 15.37
NINTENDO LTD/ADR $9.74 billion 3.54 $1.26 billion $1.32 27.19

NINTENDO LTD/ADR has higher revenue and earnings than Hasbro. Hasbro is trading at a lower price-to-earnings ratio than NINTENDO LTD/ADR, indicating that it is currently the more affordable of the two stocks.

Summary

Hasbro beats NINTENDO LTD/ADR on 10 of the 17 factors compared between the two stocks.

Hasbro Company Profile

Hasbro, Inc., together with its subsidiaries, operates as a play and entertainment company. The company's U.S. and Canada segment markets and sells action figures, arts and crafts, and creative play products; electronic toys and related electronic interactive products; fashion and other dolls, infant products, play sets, preschool toys, plush products, and sports action blasters and accessories; and vehicles and toy-related specialty products, as well as traditional board games, and trading card and role-playing games primarily in the United States and Canada. Its International segment markets and sells toy and game products primarily in the European, the Asia Pacific, and Latin and South American regions. The company's Entertainment and Licensing segment engages in consumer products licensing, digital gaming, and movie and television entertainment operations. The company sells its products to wholesalers, distributors, chain stores, discount stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as Internet-based e-tailers. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.

NINTENDO LTD/ADR Company Profile

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells electronic entertainment products in Japan, the United States, Europe, Australia, Asia, and internationally. It provides video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is based in Kyoto, Japan.

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