GigaMedia (GIGM) vs. Its Competitors Head to Head Analysis

GigaMedia (NASDAQ:GIGM) is one of 185 publicly-traded companies in the “Entertainment” industry, but how does it weigh in compared to its rivals? We will compare GigaMedia to similar companies based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, risk, earnings and valuation.

Analyst Ratings

This is a summary of current recommendations for GigaMedia and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaMedia	1	0	0	0	1.00
GigaMedia Competitors	1897	4558	9689	257	2.51

As a group, “Entertainment” companies have a potential upside of 16.25%. Given GigaMedia’s rivals stronger consensus rating and higher probable upside, analysts clearly believe GigaMedia has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

13.5% of GigaMedia shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are owned by institutional investors. 1.0% of GigaMedia shares are owned by insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares GigaMedia and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GigaMedia	12.95%	-0.25%	-0.23%
GigaMedia Competitors	9.83%	-32.30%	-2.88%

Valuation and Earnings

This table compares GigaMedia and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GigaMedia	$3.47 million	-$1.55 million	17.19
GigaMedia Competitors	$4.05 billion	$67.95 million	2.60

GigaMedia’s rivals have higher revenue and earnings than GigaMedia. GigaMedia is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

GigaMedia has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, GigaMedia’s rivals have a beta of 1.00, suggesting that their average stock price is 0% more volatile than the S&P 500.

Summary

GigaMedia rivals beat GigaMedia on 9 of the 12 factors compared.

GigaMedia Company Profile

GigaMedia Limited (NASDAQ: GIGM) is an online games and entertainment company focused primarily on markets in Greater China and Southeast Asia. Through its online entertainment platforms, the company provides casual and social games, including mahjong, poker, card and other multiplayer titles designed for play on computers and mobile devices. The company operates the FunTown brand, which has historically served users in Taiwan and other Asian markets. Its services are generally supported by digital distribution and online platform features, including account management, virtual goods and other forms of in-game entertainment.