Contrasting Nintendo (NTDOY) & Its Competitors

Nintendo (OTCMKTS:NTDOY) is one of 166 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its competitors? We will compare Nintendo to related businesses based on the strength of its risk, dividends, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Institutional & Insider 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, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.3%. 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 5.8% 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.

Volatility and Risk

Nintendo has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Nintendo’s competitors have a beta of 0.50, meaning that their average stock price is 50% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets 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	1441	3443	5284	197	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 57.49%. Given Nintendo’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Nintendo has less favorable growth aspects than its competitors.

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	-3.34%	-28.46%	2.40%

Earnings and Valuation

This table compares Nintendo and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nintendo	$15.37 billion	$2.80 billion	20.88
Nintendo Competitors	$3.24 billion	$219.82 million	11.71

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.

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.