Critical Comparison: Benesse (OTCMKTS:BSEFY) and Nintendo (OTCMKTS:NTDOY)

Nintendo (OTCMKTS:NTDOY) and Benesse (OTCMKTS:BSEFY) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares Nintendo and Benesse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nintendo	21.00%	16.11%	12.47%
Benesse	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nintendo and Benesse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	1	4	3	1	2.44
Benesse	0	0	0	0	0.00

Institutional & Insider Ownership

0.0% of Nintendo shares are held by institutional investors. Comparatively, 0.0% of Benesse shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. Benesse pays an annual dividend of $91.96 per share and has a dividend yield of 609.0%. Nintendo pays out 48.5% of its earnings in the form of a dividend. Benesse pays out 167.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Nintendo and Benesse”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	4.67	$2.80 billion	$0.66	21.13
Benesse	N/A	N/A	N/A	$55.01	0.27

Nintendo has higher revenue and earnings than Benesse. Benesse is trading at a lower price-to-earnings ratio than Nintendo, indicating that it is currently the more affordable of the two stocks.

Summary

Nintendo beats Benesse on 9 of the 11 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 Benesse

Benesse Holdings, Inc. provides educational, and nursing care and childcare services in Japan and internationally. The company operates through three segments: Domestic Education Business; Nursing Care and Childcare Business; and Kids & Family Business. The company engages in the correspondence course business, school and teacher support business, cram school business, English language lessons for children business, and other businesses for preschool to high school students; and nursing care and childcare business, which include the operation of nursing homes for seniors comprising fee-based homes and elderly houses with care services, home help and daytime nursing care services, food delivery, and daycare and afterschool care services. It also offers information and products relating to pregnancy, childbirth, and parenting; lifestyle information and support everyday living through forums for communication with customers; and magazines, websites, and others to help enrich life with pets. The company was formerly known as Benesse Corporation and changed its name to Benesse Holdings, Inc. in 2009. Benesse Holdings, Inc. was incorporated in 1955 and is headquartered in Okayama, Japan.