NINTENDO LTD/ADR (OTCMKTS:NTDOY) and Hasbro (NASDAQ:HAS) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Valuation & Earnings

This table compares NINTENDO LTD/ADR and Hasbro’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NINTENDO LTD/ADR $9.74 billion 3.54 $1.26 billion $1.32 27.19
Hasbro $5.21 billion 2.04 $396.60 million $5.46 15.37

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

Dividends

NINTENDO LTD/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 1.5%. Hasbro pays an annual dividend of $2.52 per share and has a dividend yield of 3.0%. NINTENDO LTD/ADR pays out 41.7% of its earnings in the form of a dividend. Hasbro pays out 46.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hasbro has raised its dividend for 8 consecutive years. Hasbro is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for NINTENDO LTD/ADR and Hasbro, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NINTENDO LTD/ADR 0 1 1 0 2.50
Hasbro 1 5 9 0 2.53

Hasbro has a consensus target price of $105.33, suggesting a potential upside of 25.50%. Given Hasbro’s stronger consensus rating and higher probable upside, analysts plainly believe Hasbro is more favorable than NINTENDO LTD/ADR.

Profitability

This table compares NINTENDO LTD/ADR and Hasbro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NINTENDO LTD/ADR 14.20% 11.46% 9.09%
Hasbro 4.31% 34.61% 11.84%

Institutional & Insider Ownership

0.2% of NINTENDO LTD/ADR shares are owned by institutional investors. Comparatively, 86.2% of Hasbro shares are owned by institutional investors. 9.9% of Hasbro shares 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.

Volatility & Risk

NINTENDO LTD/ADR has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Hasbro has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Summary

Hasbro beats NINTENDO LTD/ADR on 10 of the 17 factors compared between the two stocks.

NINTENDO LTD/ADR Company Profile

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells electronic entertainment products in Japan, the United States, Europe, Australia, Asia, and internationally. It provides video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is based in Kyoto, Japan.

Hasbro Company Profile

Hasbro, Inc., together with its subsidiaries, operates as a play and entertainment company. The company's U.S. and Canada segment markets and sells action figures, arts and crafts, and creative play products; electronic toys and related electronic interactive products; fashion and other dolls, infant products, play sets, preschool toys, plush products, and sports action blasters and accessories; and vehicles and toy-related specialty products, as well as traditional board games, and trading card and role-playing games primarily in the United States and Canada. Its International segment markets and sells toy and game products primarily in the European, the Asia Pacific, and Latin and South American regions. The company's Entertainment and Licensing segment engages in consumer products licensing, digital gaming, and movie and television entertainment operations. The company sells its products to wholesalers, distributors, chain stores, discount stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as Internet-based e-tailers. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.

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