Analyzing Aristocrat Leisure (ARLUF) and Its Competitors
by Danessa Lincoln · The Markets DailyAristocrat Leisure (OTCMKTS:ARLUF – Get Free Report) is one of 385 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its peers? We will compare Aristocrat Leisure to similar businesses based on the strength of its analyst recommendations, institutional ownership, dividends, profitability, earnings, valuation and risk.
Dividends
Aristocrat Leisure pays an annual dividend of $0.15 per share and has a dividend yield of 0.3%. Aristocrat Leisure pays out -534.5% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.5% and pay out 45.4% of their earnings in the form of a dividend.
Analyst Ratings
This is a summary of recent ratings for Aristocrat Leisure and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aristocrat Leisure | 0 | 0 | 1 | 0 | 3.00 |
| Aristocrat Leisure Competitors | 3677 | 16786 | 24790 | 860 | 2.50 |
Aristocrat Leisure currently has a consensus price target of $58.00, indicating a potential upside of 23.46%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 82.05%. Given Aristocrat Leisure’s peers higher possible upside, analysts plainly believe Aristocrat Leisure has less favorable growth aspects than its peers.
Profitability
This table compares Aristocrat Leisure and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aristocrat Leisure | N/A | N/A | N/A |
| Aristocrat Leisure Competitors | -10.74% | -36.69% | 1.82% |
Earnings and Valuation
This table compares Aristocrat Leisure and its peers top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Aristocrat Leisure | N/A | N/A | -1,620.00 |
| Aristocrat Leisure Competitors | $3.38 billion | $246.09 million | 10.88 |
Aristocrat Leisure’s peers have higher revenue and earnings than Aristocrat Leisure. Aristocrat Leisure 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
23.8% of Aristocrat Leisure shares are held by institutional investors. Comparatively, 48.8% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 21.9% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Aristocrat Leisure peers beat Aristocrat Leisure on 8 of the 13 factors compared.
About Aristocrat Leisure
Aristocrat Leisure Limited, together with its subsidiaries, operates as a gaming content and technology company in Australia and internationally. The company designs, develops, assembles, distributes, sells, and services gaming content, platforms, and systems, including electronic gaming machines, casino management systems, and free-to-play mobile games. It also offers pixel united, a mobile-first games powerhouse; aristocrat gaming, a gaming content; and Anaxi, an immersive and interactive digital entertainment experience content. In addition, the company provides online money gaming services; and cabinets and gaming products. Aristocrat Leisure Limited was founded in 1950 and is headquartered in North Ryde, Australia.