Latham Group (NASDAQ:SWIM – Get Free Report) and JAKKS Pacific (NASDAQ:JAKK – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Profitability
This table compares Latham Group and JAKKS Pacific’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Latham Group | 0.92% | 1.31% | 0.63% |
| JAKKS Pacific | 2.77% | 4.33% | 2.42% |
Institutional and Insider Ownership
84.0% of Latham Group shares are owned by institutional investors. Comparatively, 44.4% of JAKKS Pacific shares are owned by institutional investors. 3.3% of Latham Group shares are owned by insiders. Comparatively, 4.2% of JAKKS Pacific shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Latham Group | $545.91 million | 1.50 | $11.12 million | $0.05 | 139.60 |
| JAKKS Pacific | $584.24 million | 0.50 | $9.87 million | $1.39 | 18.42 |
Latham Group has higher earnings, but lower revenue than JAKKS Pacific. JAKKS Pacific is trading at a lower price-to-earnings ratio than Latham Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Latham Group and JAKKS Pacific, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Latham Group | 3 | 2 | 2 | 0 | 1.86 |
| JAKKS Pacific | 0 | 2 | 0 | 0 | 2.00 |
Latham Group currently has a consensus price target of $7.83, indicating a potential upside of 12.23%. Given Latham Group’s higher possible upside, equities analysts plainly believe Latham Group is more favorable than JAKKS Pacific.
Volatility & Risk
Latham Group has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, JAKKS Pacific has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
About Latham Group
Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.
About JAKKS Pacific
JAKKS Pacific, Inc. designs, produces, markets, sells, and distributes toys and related products, electronic products, and other consumer products worldwide. It operates through two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; junior sports toys, including hyper-charged balls, sport sets, and toy hoops; and board games. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was incorporated in 1995 and is headquartered in Santa Monica, California.
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