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| Mattel Doll - Whitney (Photo credit: dog.happy.art) |
LeapFrog is a small cap and its operating margin of 5.28% is much less than Mattel and Hasbro because of the lack of economies of scale. However, LeapFrog has shown significant growth in revenue during these years. From 2009 to 2010, the company’s net income improved greatly from a loss of $2.7 million to a $4.9 million profit, and its net income increased by more than 300% to $19.9 million in 2011. LeapFrog has a P/E ratio of 27.5, well above the industry average. With a positive market outlook and a huge potential, the company’s stock is worth buying.
Cash and Dividends over the YearsMattel’s current dividend yield is 3.9%, which is pretty decent. Although LeapFrog does not offer dividends yet, it’s still a growing company and has only been public for 10 years. I think for a growing company like Leap Frog... Continue to read.
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