Gravity (NASDAQ: GRVY) and Mattel (NASDAQ:MAT) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Institutional and Insider Ownership
6.9% of Gravity shares are held by institutional investors. Comparatively, 93.9% of Mattel shares are held by institutional investors. 1.4% of Mattel shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Gravity and Mattel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Gravity and Mattel’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mattel||$4.88 billion||1.12||-$1.05 billion||($3.06)||-5.20|
Gravity has higher earnings, but lower revenue than Mattel. Mattel is trading at a lower price-to-earnings ratio than Gravity, indicating that it is currently the more affordable of the two stocks.
Mattel pays an annual dividend of $0.53 per share and has a dividend yield of 3.3%. Gravity does not pay a dividend. Mattel pays out -17.3% of its earnings in the form of a dividend.
Volatility and Risk
Gravity has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Mattel has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
This is a breakdown of recent recommendations for Gravity and Mattel, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mattel has a consensus price target of $19.45, suggesting a potential upside of 22.36%. Given Mattel’s higher possible upside, analysts clearly believe Mattel is more favorable than Gravity.
Mattel beats Gravity on 8 of the 15 factors compared between the two stocks.
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.
Mattel Company Profile
Mattel, Inc. manufactures and markets a range of toy products around the world. The Company’s segments are North America; International, and American Girl. Its portfolio of brands and products are grouped into approximately four major brand categories, including Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands and Construction and Arts & Crafts Brands. The Mattel Girls & Boys Brands category includes Barbie fashion dolls, Monster High, Disney Classics, Ever After High, Little Mommy, and Polly Pocket, Hot Wheels and Matchbox vehicles and play sets, and CARS, Disney Planes, BOOMco, Toy Story, Max Steel, WWE Wrestling and DC Comics. The Fisher-Price Brands category includes Fisher-Price, Little People, BabyGear, Laugh & Learn, Imaginext, Thomas & Friends, Blaze and The Monster Machines, Shimmer and Shine, Mickey Mouse Clubhouse, Minnie Mouse, Octonauts, and Power Wheels. The Construction and Arts & Crafts Brands category includes MEGA BLOKS, RoseArt and Board Dudes.
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