Activision Blizzard (ATVI) & The Competition Head-To-Head Review

Activision Blizzard (NASDAQ: ATVI) is one of 181 public companies in the “Prepackaged software” industry, but how does it compare to its peers? We will compare Activision Blizzard to similar businesses based on the strength of its dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

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This table compares Activision Blizzard and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Activision Blizzard 3.89% 17.48% 9.62%
Activision Blizzard Competitors -7.55% -81.69% -2.09%

Dividends

Activision Blizzard pays an annual dividend of $0.34 per share and has a dividend yield of 0.5%. Activision Blizzard pays out 16.6% 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 42.5% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Activision Blizzard and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Activision Blizzard 0 5 23 0 2.82
Activision Blizzard Competitors 1057 5501 11439 439 2.61

Activision Blizzard presently has a consensus target price of $74.30, indicating a potential upside of 10.53%. As a group, “Prepackaged software” companies have a potential upside of 4.65%. Given Activision Blizzard’s stronger consensus rating and higher probable upside, equities analysts plainly believe Activision Blizzard is more favorable than its peers.

Valuation & Earnings

This table compares Activision Blizzard and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Activision Blizzard $7.02 billion $273.00 million 32.79
Activision Blizzard Competitors $1.68 billion $250.21 million -1.64

Activision Blizzard has higher revenue and earnings than its peers. Activision Blizzard is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

85.6% of Activision Blizzard shares are owned by institutional investors. Comparatively, 58.7% of shares of all “Prepackaged software” companies are owned by institutional investors. 2.1% of Activision Blizzard shares are owned by insiders. Comparatively, 22.6% of shares of all “Prepackaged software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Activision Blizzard has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Activision Blizzard’s peers have a beta of -17.41, indicating that their average stock price is 1,841% less volatile than the S&P 500.

Summary

Activision Blizzard beats its peers on 12 of the 15 factors compared.

Activision Blizzard Company Profile

Activision Blizzard, Inc. develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and King Digital Entertainment. The company develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content. It also maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games; and develops and publishes interactive entertainment content and services primarily on mobile platforms, such as Android and iOS, as well as distributes its content and services on the PC platform primarily through Facebook. In addition, the company engages in creating original film and television content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. Its products include various genres, including first-person shooter, action/adventure, role-playing, strategy, and others. The company serves retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements in the United States, Australia, Brazil, Canada, China, France, Germany, Ireland, Italy, Japan, Malta, Mexico, the Netherlands, Romania, Singapore, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. Activision Blizzard, Inc. was incorporated in 1979 and is headquartered in Santa Monica, California.

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