Capcom (OTCMKTS:CCOEY – Get Free Report) and DouYu International (NASDAQ:DOYU – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Insider and Institutional Ownership
17.9% of DouYu International shares are held by institutional investors. 17.3% of DouYu International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Capcom and DouYu International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capcom | $1.30 billion | 11.55 | $360.28 million | $0.51 | 27.57 |
| DouYu International | $546.09 million | 0.24 | -$4.16 million | ($0.16) | -26.88 |
Capcom has higher revenue and earnings than DouYu International. DouYu International is trading at a lower price-to-earnings ratio than Capcom, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Capcom has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, DouYu International has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.
Profitability
This table compares Capcom and DouYu International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capcom | 30.13% | 24.90% | 20.58% |
| DouYu International | -0.94% | 2.66% | 1.69% |
Analyst Ratings
This is a breakdown of current ratings for Capcom and DouYu International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capcom | 0 | 1 | 1 | 0 | 2.50 |
| DouYu International | 1 | 1 | 0 | 0 | 1.50 |
DouYu International has a consensus price target of $5.00, suggesting a potential upside of 16.28%. Given DouYu International’s higher probable upside, analysts plainly believe DouYu International is more favorable than Capcom.
Summary
Capcom beats DouYu International on 10 of the 14 factors compared between the two stocks.
About Capcom
Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.
About DouYu International
DouYu International Holdings Limited, together with its subsidiaries, operates a platform on PC and mobile apps that provides interactive games and entertainment live streaming services in the People’s Republic of China. Its platform connects game developers and publishers, professional eSports teams or players and eSports tournament organizers, advertisers, and viewers. The company also sponsors professional players and teams, as well as organizes eSports tournaments. In addition, it streams other content to include a spectrum of live streaming entertainment options, such as talent shows, music, outdoor, and travel. Further, the company records and offers video clips to allow users to watch replays of selective live streaming content; and graphics that include game guides, tutorials, news, and other types of content. DouYu International Holdings Limited was founded in 2014 and is headquartered in Wuhan, the People’s Republic of China.
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