Head to Head Survey: Hasbro (HAS) vs. Gravity (GRVY)

Hasbro (NASDAQ: HAS) and Gravity (NASDAQ:GRVY) are both cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Hasbro and Gravity, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hasbro 0 6 7 0 2.54
Gravity 0 0 0 0 N/A

Hasbro presently has a consensus target price of $110.54, indicating a potential upside of 14.30%. Given Hasbro’s higher possible upside, equities analysts clearly believe Hasbro is more favorable than Gravity.

Dividends

Hasbro pays an annual dividend of $2.28 per share and has a dividend yield of 2.4%. Gravity does not pay a dividend. Hasbro pays out 72.8% of its earnings in the form of a dividend.

Risk & Volatility

Hasbro has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Gravity has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Institutional and Insider Ownership

79.9% of Hasbro shares are owned by institutional investors. Comparatively, 7.0% of Gravity shares are owned by institutional investors. 11.0% of Hasbro shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Hasbro and Gravity’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hasbro $5.21 billion 2.31 $396.60 million $3.13 30.90
Gravity $42.70 million 6.35 $200,000.00 $2.26 34.60

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

Profitability

This table compares Hasbro and Gravity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hasbro 7.61% 36.36% 13.32%
Gravity 9.78% 26.08% 13.50%

Summary

Hasbro beats Gravity on 10 of the 15 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.

Gravity Company Profile

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.

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