King Digital Entertainment (KING) versus The Competition Head-To-Head Analysis

King Digital Entertainment (NYSE: KING) is one of 60 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its peers? We will compare King Digital Entertainment to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, analyst recommendations, risk and earnings.

Profitability

This table compares King Digital Entertainment and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
King Digital Entertainment 19.58% 33.71% 24.95%
King Digital Entertainment Competitors -23.23% -240.20% -12.42%

Analyst Ratings

This is a summary of current ratings and target prices for King Digital Entertainment and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
King Digital Entertainment 0 0 0 0 N/A
King Digital Entertainment Competitors 216 1562 2958 93 2.61

As a group, “Application Software” companies have a potential upside of 12.95%. Given King Digital Entertainment’s peers higher probable upside, analysts clearly believe King Digital Entertainment has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares King Digital Entertainment and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
King Digital Entertainment N/A N/A 10.29
King Digital Entertainment Competitors $992.95 million $67.34 million 581.61

King Digital Entertainment’s peers have higher revenue and earnings than King Digital Entertainment. King Digital Entertainment is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

70.1% of shares of all “Application Software” companies are owned by institutional investors. 15.4% of shares of all “Application Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

King Digital Entertainment peers beat King Digital Entertainment on 5 of the 8 factors compared.

About King Digital Entertainment

King Digital Entertainment plc is an interactive entertainment company for the mobile world. The Company has four franchises: Candy Crush, Farm Heroes, Bubble Witch and Pet Rescue. The Company develops and publishes games that can be played on its king.com and royalgames.com Websites, Facebook and, mobile platforms, such as iOS and Android. The Company is involved in developing and monetizing digital games on multiple platforms. The Company’s games include Candy Crush Saga, Candy Crush Soda Saga, Farm Heroes Saga, Pet Rescue Saga and Bubble Witch 2 Saga. As of December 31, 2014, the Company had 533 million monthly active users (MAUs), 149 million daily active users (DAUs), 356 million monthly unique users (MUUs) and 8,344 million monthly unique payers (MUPs).

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