King Digital Entertainment (NYSE: KING) is one of 60 publicly-traded companies in the “Application Software” industry, but how does it contrast to its peers? We will compare King Digital Entertainment to similar businesses based on the strength of its earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
This table compares King Digital Entertainment and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|King Digital Entertainment||19.58%||33.71%||24.95%|
|King Digital Entertainment Competitors||-23.83%||-240.19%||-12.40%|
70.1% of shares of all “Application Software” companies are held by institutional investors. 15.4% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for King Digital Entertainment and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|King Digital Entertainment||0||0||0||0||N/A|
|King Digital Entertainment Competitors||188||1531||2891||91||2.61|
As a group, “Application Software” companies have a potential upside of 8.16%. Given King Digital Entertainment’s peers higher possible upside, analysts plainly believe King Digital Entertainment has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares King Digital Entertainment and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|King Digital Entertainment||N/A||N/A||10.29|
|King Digital Entertainment Competitors||$1.02 billion||$67.00 million||585.60|
King Digital Entertainment’s peers have higher revenue and earnings than King Digital Entertainment. King Digital Entertainment is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
King Digital Entertainment peers beat King Digital Entertainment on 5 of the 8 factors compared.
About King Digital Entertainment
King Digital Entertainment plc is an interactive entertainment company for the mobile world. The Company has four franchises: Candy Crush, Farm Heroes, Bubble Witch and Pet Rescue. The Company develops and publishes games that can be played on its king.com and royalgames.com Websites, Facebook and, mobile platforms, such as iOS and Android. The Company is involved in developing and monetizing digital games on multiple platforms. The Company’s games include Candy Crush Saga, Candy Crush Soda Saga, Farm Heroes Saga, Pet Rescue Saga and Bubble Witch 2 Saga. As of December 31, 2014, the Company had 533 million monthly active users (MAUs), 149 million daily active users (DAUs), 356 million monthly unique users (MUUs) and 8,344 million monthly unique payers (MUPs).
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