Nintendo (OTCMKTS:NTDOY – Get Free Report) and TAL Education Group (NYSE:TAL – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Profitability
This table compares Nintendo and TAL Education Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nintendo | 21.00% | 16.31% | 12.59% |
| TAL Education Group | 28.43% | 24.55% | 15.08% |
Analyst Ratings
This is a summary of current ratings and target prices for Nintendo and TAL Education Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nintendo | 2 | 3 | 3 | 1 | 2.33 |
| TAL Education Group | 0 | 2 | 1 | 1 | 2.75 |
Insider and Institutional Ownership
0.0% of Nintendo shares are held by institutional investors. Comparatively, 37.8% of TAL Education Group shares are held by institutional investors. 1.8% of TAL Education Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Nintendo and TAL Education Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nintendo | $15.37 billion | 4.20 | $2.80 billion | $0.66 | 18.98 |
| TAL Education Group | $3.19 billion | 2.09 | $530.75 million | $1.61 | 7.48 |
Nintendo has higher revenue and earnings than TAL Education Group. TAL Education Group is trading at a lower price-to-earnings ratio than Nintendo, indicating that it is currently the more affordable of the two stocks.
Dividends
Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. TAL Education Group pays an annual dividend of $1.80 per share and has a dividend yield of 14.9%. Nintendo pays out 48.5% of its earnings in the form of a dividend. TAL Education Group pays out 111.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Nintendo has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, TAL Education Group has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
Summary
TAL Education Group beats Nintendo on 9 of the 16 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 TAL Education Group
TAL Education Group provides K-12 after-school tutoring services in the People’s Republic of China. It provides learning services primarily through small-classes services; personalized premium services; and learning content solutions, such as print books, smart books, mobile apps, and AI-driven learning devices. The company also operates www.xueersi.com, an online education platform; provides investment management and consulting services; develops and sells software and networks, as well as related consulting services; and sells educational materials and products. It offers its services under the Haoweilai and Think Academy brands. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People’s Republic of China.
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