GungHo Online Entertainment (OTCMKTS:GUNGF – Get Free Report) and NEXON (OTCMKTS:NEXOY – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Dividends
GungHo Online Entertainment pays an annual dividend of $199.57 per share and has a dividend yield of 1,263.1%. NEXON pays an annual dividend of C$0.26 per share and has a dividend yield of 1.4%. GungHo Online Entertainment pays out 370.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NEXON pays out 23.4% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares GungHo Online Entertainment and NEXON”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GungHo Online Entertainment | N/A | N/A | N/A | $53.82 | 0.29 |
| NEXON | $3.18 billion | 4.74 | $616.75 million | C$1.11 | 17.10 |
NEXON has higher revenue and earnings than GungHo Online Entertainment. GungHo Online Entertainment is trading at a lower price-to-earnings ratio than NEXON, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares GungHo Online Entertainment and NEXON’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GungHo Online Entertainment | N/A | N/A | N/A |
| NEXON | 26.37% | 12.45% | 9.72% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for GungHo Online Entertainment and NEXON, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GungHo Online Entertainment | 0 | 0 | 0 | 0 | 0.00 |
| NEXON | 0 | 2 | 2 | 0 | 2.50 |
Institutional & Insider Ownership
2.6% of GungHo Online Entertainment shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
NEXON beats GungHo Online Entertainment on 8 of the 11 factors compared between the two stocks.
About GungHo Online Entertainment
GungHo Online Entertainment, Inc. plans, develops, operates, and distributes smartphone applications, console games, and online computer games. The company was formerly known as ONSale Co., Ltd. and changed its name to GungHo Online Entertainment, Inc. in August 2002. GungHo Online Entertainment, Inc. was incorporated in 1998 and is based in Tokyo, Japan.
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.
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