Monarch Casino & Resort (NASDAQ:MCRI – Get Free Report) and Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Institutional & Insider Ownership
62.4% of Monarch Casino & Resort shares are held by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are held by institutional investors. 26.3% of Monarch Casino & Resort shares are held by company insiders. Comparatively, 1.3% of Take-Two Interactive Software shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Monarch Casino & Resort and Take-Two Interactive Software”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Monarch Casino & Resort | $545.12 million | 4.00 | $101.39 million | $6.24 | 19.68 |
| Take-Two Interactive Software | $6.66 billion | 6.91 | -$298.20 million | ($1.62) | -152.85 |
Monarch Casino & Resort 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 Monarch Casino & Resort, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Monarch Casino & Resort has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Profitability
This table compares Monarch Casino & Resort and Take-Two Interactive Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Monarch Casino & Resort | 20.40% | 20.63% | 15.79% |
| Take-Two Interactive Software | -4.48% | 14.68% | 5.22% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Monarch Casino & Resort and Take-Two Interactive Software, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Monarch Casino & Resort | 1 | 3 | 2 | 0 | 2.17 |
| Take-Two Interactive Software | 1 | 1 | 16 | 1 | 2.89 |
Monarch Casino & Resort currently has a consensus target price of $124.40, suggesting a potential upside of 1.31%. Take-Two Interactive Software has a consensus target price of $294.44, suggesting a potential upside of 18.91%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, analysts plainly believe Take-Two Interactive Software is more favorable than Monarch Casino & Resort.
Summary
Monarch Casino & Resort beats Take-Two Interactive Software on 8 of the 15 factors compared between the two stocks.
About Monarch Casino & Resort
Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.
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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