Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) and Boyd Gaming (NYSE:BYD – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Profitability
This table compares Take-Two Interactive Software and Boyd Gaming’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Take-Two Interactive Software | -64.26% | 12.49% | 4.43% |
| Boyd Gaming | 46.02% | 34.63% | 9.34% |
Analyst Recommendations
This is a breakdown of current recommendations for Take-Two Interactive Software and Boyd Gaming, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Take-Two Interactive Software | 1 | 3 | 20 | 0 | 2.79 |
| Boyd Gaming | 0 | 10 | 5 | 0 | 2.33 |
Institutional and Insider Ownership
95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 76.8% of Boyd Gaming shares are owned by institutional investors. 1.3% of Take-Two Interactive Software shares are owned by company insiders. Comparatively, 27.9% of Boyd Gaming shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Take-Two Interactive Software has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Boyd Gaming has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.
Valuation and Earnings
This table compares Take-Two Interactive Software and Boyd Gaming”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Take-Two Interactive Software | $5.63 billion | 8.11 | -$4.48 billion | ($22.59) | -10.95 |
| Boyd Gaming | $3.93 billion | 1.72 | $577.95 million | $22.88 | 3.78 |
Boyd Gaming has lower revenue, but higher earnings than Take-Two Interactive Software. Take-Two Interactive Software is trading at a lower price-to-earnings ratio than Boyd Gaming, indicating that it is currently the more affordable of the two stocks.
Summary
Boyd Gaming beats Take-Two Interactive Software on 8 of the 14 factors compared between the two stocks.
About Take-Two Interactive Software
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.
About Boyd Gaming
Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It also engages in owning and operating a travel agency. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.
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