FTSE 250 Company Beats Google on Profitability, Valuation: Analyst
FTSE 250 Company Beats Google on Profitability, Valuation: Analyst
As of October 25, 2023, Google is the most valuable company in the world, with a market capitalization of over $1.5 trillion. It is also one of the most profitable companies, with annual revenue of over $250 billion. However, there is one FTSE 250 company that I think might be a better business than Google: Games Workshop.
Games Workshop is a British company that produces miniature wargames and related products. The company is best known for its Warhammer 40,000 and Warhammer Age of Sigmar games. Games Workshop is a very profitable company, with gross margins of 68% and operating margins of 36%. These margins are significantly higher than Google’s, which are 55% and 26%, respectively.
Another advantage that Games Workshop has over Google is that it has lower cash requirements. Games Workshop does not need to invest heavily in research and development, unlike Google. As a result, Games Workshop is able to generate a lot of free cash flow. In 2022, Games Workshop generated £170 million in free cash flow, which is equivalent to over 85% of its operating income.
Games Workshop is also trading at a more attractive valuation than Google. Games Workshop’s stock is trading at a price-to-earnings ratio of 25, while Google’s stock is trading at a price-to-earnings ratio of 35.
Overall, I think that Games Workshop is a better business than Google. Games Workshop has better profitability metrics, lower cash requirements, and trades at a more attractive valuation.
Why You Should Care
If you are an investor, you should care about this because Games Workshop is a stock that is worth considering for your portfolio. Games Workshop is a well-managed company with a strong track record of profitability. The company is also trading at a more attractive valuation than Google.
If you are a consumer, you should care about this because Games Workshop is a company that produces high-quality products. Games Workshop’s miniature wargames are some of the most popular in the world. The company also has a strong brand loyalty among its customers.
Games Workshop is a FTSE 250 company that is worth considering for your investment portfolio. The company has better profitability metrics, lower cash requirements, and trades at a more attractive valuation than Google. Games Workshop is also a well-managed company with a strong track record of profitability.
