Critical Analysis: Mattel (NASDAQ:MAT) and Majic Wheels (OTCMKTS:MJWL)

Majic Wheels (OTCMKTS:MJWL) and Mattel (NASDAQ:MAT) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Profitability

This table compares Majic Wheels and Mattel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Majic Wheels	N/A	N/A	N/A
Mattel	9.82%	25.80%	8.90%

Institutional & 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Majic Wheels and Mattel”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Majic Wheels	N/A	N/A	N/A	N/A	N/A
Mattel	$5.38 billion	1.15	$541.82 million	$1.56	12.26

Mattel has higher revenue and earnings than Majic Wheels.

Volatility and Risk

Majic Wheels has a beta of 3.23, meaning that its share price is 223% more volatile than the S&P 500. Comparatively, Mattel has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Majic Wheels and Mattel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Majic Wheels	0	0	0	0	0.00
Mattel	0	2	5	0	2.71

Mattel has a consensus price target of $24.43, indicating a potential upside of 27.76%. Given Mattel’s stronger consensus rating and higher possible upside, analysts plainly 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 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.

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.