WEBTOON Entertainment (WBTN) and Its Rivals Critical Analysis

WEBTOON Entertainment (NASDAQ:WBTN) is one of 192 public companies in the “Interactive Media & Services” industry, but how does it contrast to its competitors? We will compare WEBTOON Entertainment to similar businesses based on the strength of its earnings, risk, analyst recommendations, institutional ownership, valuation, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and target prices for WEBTOON Entertainment and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEBTOON Entertainment	1	5	1	0	2.00
WEBTOON Entertainment Competitors	1437	6002	11538	441	2.57

WEBTOON Entertainment presently has a consensus target price of $10.88, suggesting a potential upside of 10.35%. As a group, “Interactive Media & Services” companies have a potential upside of 31.71%. Given WEBTOON Entertainment’s competitors stronger consensus rating and higher probable upside, analysts clearly believe WEBTOON Entertainment has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

41.1% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 5.6% of WEBTOON Entertainment shares are owned by insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares WEBTOON Entertainment and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
WEBTOON Entertainment	$1.38 billion	-$345.93 million	-3.75
WEBTOON Entertainment Competitors	$12.05 billion	$3.48 billion	21.89

WEBTOON Entertainment’s competitors have higher revenue and earnings than WEBTOON Entertainment. WEBTOON Entertainment is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

WEBTOON Entertainment has a beta of 2.65, suggesting that its stock price is 165% more volatile than the S&P 500. Comparatively, WEBTOON Entertainment’s competitors have a beta of 1.81, suggesting that their average stock price is 81% more volatile than the S&P 500.

Profitability

This table compares WEBTOON Entertainment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEBTOON Entertainment	-25.09%	2.10%	1.60%
WEBTOON Entertainment Competitors	-349.35%	-22.60%	4.06%

Summary

WEBTOON Entertainment competitors beat WEBTOON Entertainment on 10 of the 13 factors compared.

WEBTOON Entertainment Company Profile

WEBTOON Entertainment Inc. operates a storytelling platform worldwide. The company’s platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories. The company was founded in 2014 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.