Financial Contrast: Capcom (CCOEY) versus Its Peers

Capcom (OTCMKTS:CCOEY) is one of 67 public companies in the “GAMING” industry, but how does it compare to its rivals? We will compare Capcom to related businesses based on the strength of its institutional ownership, risk, earnings, analyst recommendations, valuation, profitability and dividends.

Insider and Institutional Ownership

43.1% of shares of all “GAMING” companies are held by institutional investors. 23.1% of shares of all “GAMING” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Capcom has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Capcom’s rivals have a beta of 2.50, indicating that their average stock price is 150% more volatile than the S&P 500.

Dividends

Capcom pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Capcom pays out 26.3% of its earnings in the form of a dividend. As a group, “GAMING” companies pay a dividend yield of 1.2% and pay out 26.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Capcom and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capcom	0	0	1	0	3.00
Capcom Competitors	397	2341	5087	132	2.62

As a group, “GAMING” companies have a potential upside of 20.28%. Given Capcom’s rivals higher possible upside, analysts clearly believe Capcom has less favorable growth aspects than its rivals.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Capcom	$1.11 billion	$319.78 million	44.21
Capcom Competitors	$2.53 billion	$24.51 million	14.46

Capcom’s rivals have higher revenue, but lower earnings than Capcom. Capcom 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capcom	28.51%	23.33%	18.35%
Capcom Competitors	-63.79%	-44.74%	-4.90%

Summary

Capcom beats its rivals on 8 of the 15 factors compared.

Capcom Company Profile

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.