Toy story: Hasbro tapped for gains, wait on Mattel


Hasbro (NASDAQ:HAS) looks like a more attractive stock to own than Mattel (NASDAQ:MAT) with EPS moving in the right direction and shares paying out a healthy 3.3% dividend yield, according to Barron's Jack Hough.

The divergence of the two toy stocks is based largely on bets on brands.

Hasbro has been able to move nimbly across "storytelling" cartoon or movie- related toy concepts and license key brands from Disney - while Mattel's growth and margins have been dragged down by Barbie.

FY14 revenue growth estimates: Hasbro +6.7% to $4.4B, Mattel -1% to $6.4B.

Hough calls for a 20% gain in Hasbro, while advising investors to wait on Mattel.

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Comments (7)
  • Jeb Walport
    , contributor
    Comments (951) | Send Message
     
    Come Christmas time all the talk will be about the other toy company, the one Mr. Hough doesn't even see coming.
    23 Aug 2014, 01:18 PM Reply Like
  • sdavid04191
    , contributor
    Comments (1542) | Send Message
     
    I like both companies but based on today's conditions I could buy Hasbro today and would have to wait on Mattel to correct some more before I could invest in it. I guess to long term investors where you jump in and get out makes a big difference while when buying and holding forever people see things differently.
    23 Aug 2014, 05:00 PM Reply Like
  • Brad Castro
    , contributor
    Comments (1402) | Send Message
     
    How much lower do you expect MAT to go (or would like to see it go before you would be enticed)?

     

    I do see additional technical support in the $30-$32 range, but the stock has been holding pretty steady at $35 for a while now (a key technical support level) and is already offering a 4.34% current yield (although the ex-dividend date is actually Monday, so we'll see if $35 continues to hold).

     

    But at $32, the stock would be yielding 4.75% and at $30 it would be over 5%. Unless the business seriously deteriorates from here and threatens the dividend, I just find a 4.75-5% yield on this stock to be highly unlikely.

     

    I've been arguing for the last month that the downside on the stock is fairly limited at this point, and so far that's been the case. I also don't see any near term major catalyst to move the stock one way or the other - the next earnings report is still a couple months away.

     

    The company definitely has headwinds, and there's a lot of negative sentiment out there, but I believe the stock has already priced that in (and then some IMHO).

     

    This week post ex-dividend should prove interesting . . .
    23 Aug 2014, 10:55 PM Reply Like
  • The Rebel
    , contributor
    Comments (2562) | Send Message
     
    HAS was yielding around 4.5% in Jan 2013 when I purchased it.
    24 Aug 2014, 12:43 PM Reply Like
  • chopchop0
    , contributor
    Comments (5155) | Send Message
     
    A few years ago it was the other way around.... Even Jim crammer was praising mat
    24 Aug 2014, 05:02 AM Reply Like
  • rdtuck02
    , contributor
    Comments (568) | Send Message
     
    yep, I remember this, and I ended up buying HAS anyway b/c it was in the doghouse and yielded so much more than MAT at the time. I sold some JAN 30 puts on MAT when crashed after earnings as I wouldn't mind owning it at the 5% yieldpoint.
    24 Aug 2014, 09:28 AM Reply Like
  • Jasper85
    , contributor
    Comments (436) | Send Message
     
    I like toy companies going in the seasonally strong 2H14, but I like JAKK more as a turnaround in the second half
    24 Aug 2014, 04:18 PM Reply Like
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