Critical Survey: Take-Two Interactive Software (TTWO) vs. Its Peers

Take-Two Interactive Software (NASDAQ:TTWO) is one of 185 public companies in the “Entertainment” industry, but how does it weigh in compared to its rivals? We will compare Take-Two Interactive Software to similar businesses based on the strength of its profitability, institutional ownership, dividends, valuation, earnings, analyst recommendations and risk.

Valuation & Earnings

This table compares Take-Two Interactive Software and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Take-Two Interactive Software	$6.66 billion	-$298.20 million	-176.58
Take-Two Interactive Software Competitors	$4.05 billion	$67.95 million	3.14

Take-Two Interactive Software has higher revenue, but lower earnings than its rivals. Take-Two Interactive Software is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 36.0% of shares of all “Entertainment” companies are owned by institutional investors. 1.1% of Take-Two Interactive Software shares are owned by insiders. Comparatively, 24.5% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Take-Two Interactive Software and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Take-Two Interactive Software	-3.75%	9.84%	3.72%
Take-Two Interactive Software Competitors	9.83%	-32.30%	-2.88%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Take-Two Interactive Software and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Take-Two Interactive Software	1	2	21	1	2.88
Take-Two Interactive Software Competitors	1898	4561	9691	257	2.51

Take-Two Interactive Software presently has a consensus target price of $287.30, suggesting a potential upside of 26.12%. As a group, “Entertainment” companies have a potential upside of 13.98%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, analysts plainly believe Take-Two Interactive Software is more favorable than its rivals.

Volatility and Risk

Take-Two Interactive Software has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Take-Two Interactive Software’s rivals have a beta of 1.00, indicating that their average share price is 0% more volatile than the S&P 500.

Summary

Take-Two Interactive Software beats its rivals on 8 of the 13 factors compared.

Take-Two Interactive Software Company Profile

Take-Two Interactive Software is a global publisher and developer of interactive entertainment for console, PC, and mobile platforms. Its business includes creating and distributing games, downloadable content, and related services through its wholly owned labels, including Rockstar Games, 2K, and Zynga. The company’s portfolio includes franchises such as Grand Theft Auto, Red Dead Redemption, NBA 2K, Borderlands, and Civilization, along with a range of mobile games. Its titles are sold and played in markets around the world.