Reviewing Nintendo (OTCMKTS:NTDOY) and Motorsport Games (NASDAQ:MSGM)

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

Institutional and Insider Ownership

0.0% of Nintendo shares are owned by institutional investors. Comparatively, 1.7% of Motorsport Games shares are owned by institutional investors. 17.3% of Motorsport Games shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nintendo	$7.65 billion	9.36	$1.84 billion	$0.57	24.18
Motorsport Games	$8.69 million	2.51	-$2.75 million	$0.40	9.44

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 Ratings

This is a breakdown of current recommendations for Nintendo and Motorsport Games, as provided by MarketBeat.

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

Risk and Volatility

Nintendo has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Motorsport Games has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.

Profitability

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

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

Summary

Nintendo beats Motorsport Games on 8 of the 14 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 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.