NEXON (NEXOY) and The Competition Critical Analysis

NEXON (OTCMKTS:NEXOY) is one of 186 public companies in the “Entertainment” industry, but how does it compare to its competitors? We will compare NEXON to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
NEXON	$3.18 billion	$616.75 million	17.24
NEXON Competitors	$4.25 billion	$76.31 million	13.22

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

Analyst Recommendations

This is a summary of recent ratings and price targets for NEXON and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NEXON	0	2	2	0	2.50
NEXON Competitors	1776	4383	9412	243	2.51

As a group, “Entertainment” companies have a potential upside of 22.99%. Given NEXON’s competitors stronger consensus rating and higher possible upside, analysts plainly believe NEXON has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NEXON	26.37%	12.45%	9.72%
NEXON Competitors	9.17%	-61.36%	-3.16%

Dividends

NEXON pays an annual dividend of C$0.26 per share and has a dividend yield of 1.4%. NEXON pays out 23.4% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 19.4% and pay out 78.7% of their earnings in the form of a dividend.

Institutional and Insider Ownership

35.8% of shares of all “Entertainment” companies are held by institutional investors. 23.8% of shares of all “Entertainment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

NEXON competitors beat NEXON on 8 of the 14 factors compared.

NEXON Company Profile

NEXON Co., Ltd. produces, develops, and services PC online and mobile games. It operates through five segments: Japan, Korea, China, North America, and Others. The company's PC online game titles include MapleStory, Dungeon & Fighter, and EA SPORTS FIFA ONLINE 4. The company was formerly known as NEXON Japan Co., Ltd. and changed its name to NEXON Co., Ltd. in April 2009. NEXON Co., Ltd. was founded in 1994 and is headquartered in Tokyo, Japan.