Hasbro (HAS) & Summer Infant (NASDAQ:SUMR) Critical Comparison
Hasbro (NASDAQ: HAS) and Summer Infant (NASDAQ:SUMR) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitabiliy, risk, analyst recommendations and dividends.
Insider & Institutional Ownership
78.2% of Hasbro shares are held by institutional investors. Comparatively, 50.0% of Summer Infant shares are held by institutional investors. 11.0% of Hasbro shares are held by company insiders. Comparatively, 8.4% of Summer Infant shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Hasbro and Summer Infant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hasbro pays an annual dividend of $2.28 per share and has a dividend yield of 2.2%. Summer Infant does not pay a dividend. Hasbro pays out 49.4% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations for Hasbro and Summer Infant, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hasbro currently has a consensus price target of $106.90, indicating a potential upside of 3.29%. Summer Infant has a consensus price target of $2.75, indicating a potential upside of 50.27%. Given Summer Infant’s stronger consensus rating and higher possible upside, analysts clearly believe Summer Infant is more favorable than Hasbro.
Valuation and Earnings
This table compares Hasbro and Summer Infant’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hasbro||$5.13 billion||2.53||$989.99 million||$4.62||22.40|
|Summer Infant||$194.00 million||0.18||$6.82 million||($0.19)||-9.63|
Hasbro has higher revenue and earnings than Summer Infant. Summer Infant is trading at a lower price-to-earnings ratio than Hasbro, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Hasbro has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Summer Infant has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500.
Hasbro beats Summer Infant on 12 of the 16 factors compared between the two stocks.
Hasbro Company Profile
Hasbro, Inc. (Hasbro) is a play and entertainment company. The Company’s operating segments include the U.S. and Canada, International, and Entertainment and Licensing. From toys and games to content development, including television programming, motion pictures, digital gaming and a consumer products licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. The Company’s U.S. and Canada segment is engaged in the marketing and sale of its products in the United States and Canada. The International segment is engaged in the marketing and sale of the Company’s product categories to retailers and wholesalers in most countries in Europe, Latin and South America, and the Asia Pacific region and through distributors in those countries where it has no direct presence. The Entertainment and Licensing segment includes the Company’s consumer products licensing, digital gaming, television and movie entertainment operations.
Summer Infant Company Profile
Summer Infant, Inc. is an infant and juvenile products company. The Company is engaged in the juvenile industry, providing mothers and caregivers a range of products to care for babies and toddlers. As of December 31, 2016, it marketed over 1,100 products in several product categories, including monitoring, safety, nursery, baby gear and feeding products. It markets its products, under its Summer Infant, SwaddleMe and Born Free brand names. Its anchor products in its product categories include monitoring, such as wireless fidelity (Wi-Fi)/Internet, video, audio and prenatal; safety, including gates, bath, potties, boosters and positioners; nursery, such as swaddle, travel accessories, safe sleep, soothers and sleep aides; baby gear, including strollers, bassinets, high chairs and playards, and feeding products, such as bottles, drinking cups, bibs and placemats, electronics and pacifiers. It sells its products across the globe to national retailers, as well as independent retailers.
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