Head to Head Review: Konami (KNMCY) and The Competition

Konami (OTCMKTS: KNMCY) is one of 191 publicly-traded companies in the “Prepackaged software” industry, but how does it compare to its rivals? We will compare Konami to similar companies based on the strength of its analyst recommendations, institutional ownership, risk, earnings, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Konami and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Konami 0 0 1 0 3.00
Konami Competitors 1383 6592 12646 560 2.58

Konami currently has a consensus price target of $64.93, indicating a potential upside of 39.39%. As a group, “Prepackaged software” companies have a potential upside of 3.51%. Given Konami’s stronger consensus rating and higher possible upside, research analysts plainly believe Konami is more favorable than its rivals.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Konami $2.16 billion $275.48 million 23.17
Konami Competitors $1.77 billion $187.01 million -7.96

Konami has higher revenue and earnings than its rivals. Konami 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 Konami and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Konami 12.80% 12.44% 8.85%
Konami Competitors -5.11% -61.97% 2.97%

Institutional & Insider Ownership

0.0% of Konami shares are held by institutional investors. Comparatively, 57.7% of shares of all “Prepackaged software” companies are held by institutional investors. 21.6% of shares of all “Prepackaged software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Konami has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Konami’s rivals have a beta of -17.34, suggesting that their average stock price is 1,834% less volatile than the S&P 500.

Dividends

Konami pays an annual dividend of $0.48 per share and has a dividend yield of 1.0%. Konami pays out 23.9% of its earnings in the form of a dividend. As a group, “Prepackaged software” companies pay a dividend yield of 1.2% and pay out 42.2% of their earnings in the form of a dividend.

Summary

Konami beats its rivals on 11 of the 15 factors compared.

Konami Company Profile

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

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