Nintendo (OTCMKTS:NTDOY) vs. Wynn Resorts (NASDAQ:WYNN) Financial Review

Nintendo (OTCMKTS:NTDOY) and Wynn Resorts (NASDAQ:WYNN) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Nintendo and Wynn Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	1	4	2	1	2.38
Wynn Resorts	0	2	15	1	2.94

Wynn Resorts has a consensus price target of $140.00, suggesting a potential upside of 42.77%. Given Wynn Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Wynn Resorts is more favorable than Nintendo.

Profitability

This table compares Nintendo and Wynn Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nintendo	18.33%	13.82%	10.70%
Wynn Resorts	5.14%	-42.03%	3.53%

Valuation & Earnings

This table compares Nintendo and Wynn Resorts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nintendo	$15.37 billion	4.00	$2.82 billion	$0.60	19.90
Wynn Resorts	$7.14 billion	1.43	$327.33 million	$3.35	29.27

Nintendo has higher revenue and earnings than Wynn Resorts. Nintendo is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Nintendo has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Wynn Resorts has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Dividends

Nintendo pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Wynn Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Nintendo pays out 13.3% of its earnings in the form of a dividend. Wynn Resorts pays out 29.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wynn Resorts has increased its dividend for 1 consecutive years. Wynn Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

0.0% of Nintendo shares are owned by institutional investors. Comparatively, 88.6% of Wynn Resorts shares are owned by institutional investors. 0.9% of Wynn Resorts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Wynn Resorts beats Nintendo on 10 of the 17 factors compared between the two stocks.

About Nintendo

Nintendo Co., Ltd., together with its subsidiaries, develops, manufactures, and sells home entertainment products in Japan, the Americas, Europe, and internationally. It also offers video game platforms, playing cards, Karuta, and other products; and handheld and home console hardware systems and related software. The company was formerly known as Nintendo Playing Card Co., Ltd. and changed its name to Nintendo Co., Ltd. in 1963. Nintendo Co., Ltd. was founded in 1889 and is headquartered in Kyoto, Japan.

About Wynn Resorts

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.