The toys and games industry has been growing for a number of years. Projections for the sector's growth should lead to good returns for investors, especially since toy stocks are modestly valued right now. But which toy stock should you buy?
Hasbro (NASDAQ: HAS) , the maker of Transformers and G.I. Joe, has significantly outperformed Mattel (NASDAQ: MAT) in recent years. A $10,000 investment in Hasbro 10 years ago would be worth $33,000 today with dividends reinvested. The same investment in Mattel would be worth $9,350. Obviously, Hasbro looks like the better stock to own, but it's not that simple.
Mattel is not the same company it was a few years ago. New management has significantly improved growth on the top and bottom lines, and the maker of Barbie and Hot Wheels is only getting started.
For further details see:
Why Investors Should Buy Mattel After Hasbro's Disappointing Numbers