Activision Blizzard (NASDAQ: ATVI) and CommerceHub (NASDAQ:CHUBK) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Valuation and Earnings
This table compares Activision Blizzard and CommerceHub’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Activision Blizzard||$7.02 billion||7.38||$273.00 million||$2.05||33.31|
Risk & Volatility
Activision Blizzard has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, CommerceHub has a beta of -0.93, indicating that its stock price is 193% less volatile than the S&P 500.
Activision Blizzard pays an annual dividend of $0.34 per share and has a dividend yield of 0.5%. CommerceHub does not pay a dividend. Activision Blizzard pays out 16.6% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Activision Blizzard and CommerceHub, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Activision Blizzard currently has a consensus price target of $74.30, indicating a potential upside of 8.81%. Given Activision Blizzard’s higher probable upside, equities analysts clearly believe Activision Blizzard is more favorable than CommerceHub.
This table compares Activision Blizzard and CommerceHub’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
85.5% of Activision Blizzard shares are held by institutional investors. Comparatively, 53.3% of CommerceHub shares are held by institutional investors. 2.1% of Activision Blizzard shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Activision Blizzard beats CommerceHub on 10 of the 13 factors compared between the two stocks.
Activision Blizzard Company Profile
Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. The company develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content. It also maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games; and develops and publishes interactive entertainment content and services primarily on mobile platforms, such as Android and iOS, as well as distributes its content and services on the PC platform primarily through Facebook. In addition, the company engages in creating original film and television content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. Its products include various genres, including first-person shooter, action/adventure, role-playing, strategy, and others. The company serves retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements in the United States, Australia, Brazil, Canada, China, France, Germany, Ireland, Italy, Japan, Malta, Mexico, the Netherlands, Romania, Singapore, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. Activision Blizzard, Inc. was incorporated in 1979 and is headquartered in Santa Monica, California.
CommerceHub Company Profile
CommerceHub, Inc., together with its subsidiaries, provides cloud-based e-commerce fulfillment and marketing solutions for large retailers, marketplaces, consumer brands, and marketplaces primarily in the United States and Canada. The company provides assortment expansion solutions, which enable its retailer customers to communicate electronically with their drop-ship suppliers; and demand channel solutions that allow sellers to upload their entire product catalog to platform and then transform and syndicate that product catalog to a range of e-commerce demand channels to facilitate consumer demand generation. It also offers solutions for enhanced delivery experience, which helps retailers and suppliers enhance their consumer delivery networks through the application of algorithms that optimize shipping decisions and allocate physical product inventory across fulfillment locations. CommerceHub, Inc. was founded in 1997 and is headquartered in Albany, New York.
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