Nintendo (OTCMKTS:NTDOY) and Frontdoor (NASDAQ:FTDR) Critical Comparison

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

Insider and Institutional Ownership

0.0% of Nintendo shares are held by institutional investors. 1.6% of Frontdoor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Frontdoor and Nintendo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontdoor	$2.09 billion	2.81	$255.00 million	$3.77	22.68
Nintendo	$15.37 billion	4.42	$2.80 billion	$0.66	19.97

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

Risk and Volatility

Frontdoor has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Frontdoor and Nintendo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Frontdoor	0	2	4	0	2.67
Nintendo	1	4	2	1	2.38

Frontdoor presently has a consensus target price of $92.00, indicating a potential upside of 7.59%. Given Frontdoor’s stronger consensus rating and higher probable upside, equities analysts plainly believe Frontdoor is more favorable than Nintendo.

Profitability

This table compares Frontdoor and Nintendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Frontdoor	12.72%	120.90%	14.86%
Nintendo	21.00%	16.11%	12.47%

Summary

Frontdoor beats Nintendo on 9 of the 15 factors compared between the two stocks.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

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.