Contrasting Majic Wheels (OTCMKTS:MJWL) and Mattel (NASDAQ:MAT)
by Scott Moore · The Cerbat GemMattel (NASDAQ:MAT – Get Free Report) and Majic Wheels (OTCMKTS:MJWL – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Risk and Volatility
Mattel has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Majic Wheels has a beta of 3.23, meaning that its stock price is 223% more volatile than the S&P 500.
Institutional and Insider Ownership
97.2% of Mattel shares are owned by institutional investors. 1.7% of Mattel shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Mattel and Majic Wheels”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mattel | $5.38 billion | 1.17 | $541.82 million | $1.56 | 12.48 |
| Majic Wheels | N/A | N/A | N/A | N/A | N/A |
Mattel has higher revenue and earnings than Majic Wheels.
Profitability
This table compares Mattel and Majic Wheels’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mattel | 9.82% | 25.80% | 8.90% |
| Majic Wheels | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent ratings and target prices for Mattel and Majic Wheels, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mattel | 0 | 2 | 5 | 0 | 2.71 |
| Majic Wheels | 0 | 0 | 0 | 0 | 0.00 |
Mattel currently has a consensus target price of $24.43, indicating a potential upside of 25.47%. Given Mattel’s stronger consensus rating and higher probable upside, equities analysts clearly believe Mattel is more favorable than Majic Wheels.
Summary
Mattel beats Majic Wheels on 9 of the 10 factors compared between the two stocks.
About Mattel
Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.
About Majic Wheels
Majic Wheels Corp. focuses on disruptive industries of Fintech and software development by means of acquisitions. The company was incorporated in 2007 and is based in Houston, Texas.