Gaia (NASDAQ:GAIA – Get Free Report) and Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.
Institutional and Insider Ownership
40.5% of Gaia shares are owned by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are owned by institutional investors. 26.0% of Gaia shares are owned by insiders. Comparatively, 1.1% of Take-Two Interactive Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Gaia has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gaia | 1 | 0 | 0 | 0 | 1.00 |
| Take-Two Interactive Software | 1 | 1 | 19 | 1 | 2.91 |
Take-Two Interactive Software has a consensus price target of $296.95, suggesting a potential upside of 40.13%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, analysts plainly believe Take-Two Interactive Software is more favorable than Gaia.
Valuation and Earnings
This table compares Gaia and Take-Two Interactive Software”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gaia | $98.12 million | 0.40 | -$4.49 million | ($0.24) | -6.40 |
| Take-Two Interactive Software | $6.69 billion | 5.93 | -$298.20 million | ($1.73) | -122.49 |
Gaia has higher earnings, but lower revenue than Take-Two Interactive Software. Take-Two Interactive Software is trading at a lower price-to-earnings ratio than Gaia, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gaia and Take-Two Interactive Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gaia | -6.08% | -5.82% | -3.85% |
| Take-Two Interactive Software | -4.79% | 12.25% | 4.46% |
Summary
Take-Two Interactive Software beats Gaia on 11 of the 15 factors compared between the two stocks.
About Gaia
Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.
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.
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