Ask Matt: Hasbro or Mattel? Who wins?
Q: Hasbro or Mattel. Who wins?
A: Toymakers' stocks haven't been fun and games. Going into the holiday, investors have their favorite, though.
Hasbro and Mattel have been filling investors' stockings with coal. Shares of Hasbro slipped 7% Monday after reporting quarterly revenue that missed estimates. Shares fell even though the maker of toy lightsabers profit beat expectations. Investors are disappointed by growth of Hasbro's own toy brands.
It has been rough for Mattel, too. Shares of the maker of Hot Wheels and Barbie have dropped 18% over the past year. Last quarter's profit came in 11% below expectations. Mattel is trying to retool itself by breathing high-tech tricks into its more traditional line of toys.
Hasbro continues to beat Mattel in terms of expected growth. Shares of the company are up 37% the past year. Investors like the company's lineup of franchises, including Disney's Frozen. Hasbro is expected to put up 10.7% long-term growth, which is more than double the 5.4% long-term growth expected at Mattel, S&P Capital IQ says. But Mattel is 27% bigger than Hasbro, with expected revenue of $5.6 billion.
Analysts see more upside with Mattel stock, rating it outperform with 15% upside in 18 months. Hasbro is rated an average of hold with upside of 11.7%.
Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.