Financial Survey: Nintendo (OTCMKTS:NTDOY) and Motorsport Games (NASDAQ:MSGM)

Motorsport Games (NASDAQ:MSGM) and Nintendo (OTCMKTS:NTDOY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

1.7% of Motorsport Games shares are held by institutional investors. Comparatively, 0.0% of Nintendo shares are held by institutional investors. 17.3% of Motorsport Games shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Motorsport Games and Nintendo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$9.42 million	2.84	-$2.75 million	$0.40	11.58
Nintendo	$7.65 billion	9.17	$1.84 billion	$0.57	23.70

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Motorsport Games and Nintendo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	1	0	0	2.00
Nintendo	1	4	2	2	2.56

Volatility and Risk

Motorsport Games has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	34.24%	86.01%	42.20%
Nintendo	18.91%	13.03%	10.18%

Summary

Nintendo beats Motorsport Games on 8 of the 14 factors compared between the two stocks.

About Motorsport Games

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers rFactor 2, a realistic racing simulation game; NASCAR Heat Mobile, a racing experience for mobile devices; NASCAR Heat 3, NASCAR Heat 4, NASCAR Heat 5, NASCAR Heat Ultimate Edition, and NASCAR 21: Ignition, which are racing video games; KartKraft, a kart racing simulator; NASCAR Rivals, a racing video game; and Le Mans Ultimate, a official game of the FIA World Endurance Championship and 24 Hours of Le Mans. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company offers its products for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. The company was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.

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.