Gravity (NASDAQ: GRVY) and Mattel (NASDAQ:MAT) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
14.0% of Gravity shares are held by institutional investors. Comparatively, 93.9% of Mattel shares are held by institutional investors. 1.4% of Mattel shares are held 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.
This table compares Gravity and Mattel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Gravity and Mattel, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mattel has a consensus target price of $19.45, indicating a potential upside of 37.20%. Given Mattel’s higher probable upside, analysts plainly believe Mattel is more favorable than Gravity.
Earnings and Valuation
This table compares Gravity and Mattel’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mattel||$4.88 billion||1.00||-$1.05 billion||($3.37)||-4.21|
Gravity has higher earnings, but lower revenue than Mattel. Mattel is trading at a lower price-to-earnings ratio than Gravity, indicating that it is currently the more affordable of the two stocks.
Mattel pays an annual dividend of $0.53 per share and has a dividend yield of 3.7%. Gravity does not pay a dividend. Mattel pays out -15.7% of its earnings in the form of a dividend.
Volatility & Risk
Gravity has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, Mattel has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Mattel beats Gravity on 8 of the 15 factors compared between the two stocks.
Gravity Co., Ltd. is a developer, distributor and publisher of online games in Japan and Taiwan. The Company’s segments include online games, mobile games and other. Its principal product includes Ragnarok Online, which is a multiplayer online role playing game. It categorizes products into over three categories, such as online games; mobile games and applications, and other games and game-related products and services, including character-based merchandise and animation. It offers over five online games, such as Ragnarok Online, Ragnarok Online II, Requiem, Dragonica (Dragon Saga) and R.O.S.E. Online, which are action adventure massively multiplayer online role-playing games (MMORPG). It develops mobile games, including Ragnarok Online-Uprising: Valkyrie, Ragnarok Online Mobile Story and Ragnarok Violet, and also publishes mobile games licensed from third parties. It provides games for game consoles and handheld game consoles, such as Nintendo DS, Xbox 360 and the PlayStation series.
Mattel, Inc. manufactures and markets a range of toy products around the world. The Company’s segments are North America; International, and American Girl. Its portfolio of brands and products are grouped into approximately four major brand categories, including Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands and Construction and Arts & Crafts Brands. The Mattel Girls & Boys Brands category includes Barbie fashion dolls, Monster High, Disney Classics, Ever After High, Little Mommy, and Polly Pocket, Hot Wheels and Matchbox vehicles and play sets, and CARS, Disney Planes, BOOMco, Toy Story, Max Steel, WWE Wrestling and DC Comics. The Fisher-Price Brands category includes Fisher-Price, Little People, BabyGear, Laugh & Learn, Imaginext, Thomas & Friends, Blaze and The Monster Machines, Shimmer and Shine, Mickey Mouse Clubhouse, Minnie Mouse, Octonauts, and Power Wheels. The Construction and Arts & Crafts Brands category includes MEGA BLOKS, RoseArt and Board Dudes.
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