Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) and Monarch Casino & Resort (NASDAQ:MCRI – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Analyst Ratings
This is a summary of recent ratings for Take-Two Interactive Software and Monarch Casino & Resort, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Take-Two Interactive Software | 1 | 1 | 16 | 1 | 2.89 |
| Monarch Casino & Resort | 1 | 3 | 2 | 0 | 2.17 |
Take-Two Interactive Software currently has a consensus target price of $294.44, indicating a potential upside of 18.91%. Monarch Casino & Resort has a consensus target price of $124.40, indicating a potential upside of 1.31%. Given Take-Two Interactive Software’s stronger consensus rating and higher probable upside, analysts clearly believe Take-Two Interactive Software is more favorable than Monarch Casino & Resort.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Take-Two Interactive Software | $6.66 billion | 6.91 | -$298.20 million | ($1.62) | -152.85 |
| Monarch Casino & Resort | $545.12 million | 4.00 | $101.39 million | $6.24 | 19.68 |
Monarch Casino & Resort has lower revenue, but higher earnings 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 and Volatility
Take-Two Interactive Software has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Monarch Casino & Resort has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500.
Profitability
This table compares Take-Two Interactive Software and Monarch Casino & Resort’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Take-Two Interactive Software | -4.48% | 14.68% | 5.22% |
| Monarch Casino & Resort | 20.40% | 20.63% | 15.79% |
Insider and Institutional Ownership
95.5% of Take-Two Interactive Software shares are held by institutional investors. Comparatively, 62.4% of Monarch Casino & Resort shares are held by institutional investors. 1.3% of Take-Two Interactive Software shares are held by company insiders. Comparatively, 26.3% of Monarch Casino & Resort shares are held by company 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.
Summary
Monarch Casino & Resort beats Take-Two Interactive Software on 8 of the 15 factors compared between the two stocks.
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.
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.
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