Reviewing NEXON (NEXOF) & Its Rivals

Institutional and Insider Ownership

11.1% of NEXON shares are held by institutional investors. Comparatively, 35.6% of shares of all “Entertainment” companies are held by institutional investors. 23.4% of shares of all “Entertainment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

NEXON pays an annual dividend of $7.98 per share and has a dividend yield of 57.3%. NEXON pays out 12.1% of its earnings in the form of a dividend. As a group, “Entertainment” companies pay a dividend yield of 18.9% and pay out 79.0% of their earnings in the form of a dividend. NEXON is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
NEXON	N/A	N/A	0.21
NEXON Competitors	$10.23 billion	$76.31 million	12.83

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NEXON	N/A	N/A	N/A
NEXON Competitors	9.10%	-61.46%	-3.19%

Summary

NEXON rivals beat NEXON on 5 of the 9 factors compared.

About NEXON

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.