Head-To-Head Contrast: Nintendo (NTDOY) versus Its Peers
by Mitch Edgeman · The Markets DailyNintendo (OTCMKTS:NTDOY – Get Free Report) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Nintendo to similar companies based on the strength of its risk, institutional ownership, earnings, valuation, profitability, dividends and analyst recommendations.
Risk & Volatility
Nintendo has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Nintendo’s competitors have a beta of 0.47, meaning that their average stock price is 53% less volatile than the S&P 500.
Valuation & Earnings
This table compares Nintendo and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Nintendo | $15.37 billion | $2.80 billion | 19.85 |
| Nintendo Competitors | $3.53 billion | $219.82 million | 11.89 |
Nintendo has higher revenue and earnings than its competitors. Nintendo is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares Nintendo and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nintendo | 21.00% | 16.31% | 12.59% |
| Nintendo Competitors | -3.01% | -28.38% | 2.46% |
Insider and Institutional Ownership
0.0% of Nintendo shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 19.5% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Dividends
Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. Nintendo pays out 48.5% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.0% and pay out 36.2% of their earnings in the form of a dividend. Nintendo lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Nintendo and its competitors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nintendo | 2 | 3 | 3 | 1 | 2.33 |
| Nintendo Competitors | 1432 | 3426 | 5275 | 196 | 2.41 |
As a group, “Diversified Consumer Services” companies have a potential upside of 64.30%. Given Nintendo’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Nintendo has less favorable growth aspects than its competitors.
Summary
Nintendo competitors beat Nintendo on 8 of the 15 factors compared.
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.