Nintendo (OTCMKTS:NTDOY) vs. Universal Entertainment (OTCMKTS:UETMF) Critical Contrast

Universal Entertainment (OTCMKTS:UETMFGet Free Report) and Nintendo (OTCMKTS:NTDOYGet Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

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

Risk & Volatility

Universal Entertainment has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Universal Entertainment and Nintendo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Entertainment 0 0 0 0 0.00
Nintendo 0 1 3 1 3.00

Valuation & Earnings

This table compares Universal Entertainment and Nintendo”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Entertainment $1.28 billion 0.44 $201.92 million ($1.28) -5.63
Nintendo $7.65 billion 15.10 $1.84 billion $0.39 57.03

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

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Entertainment -10.10% -3.46% -2.13%
Nintendo 23.81% 10.51% 8.50%

Summary

Nintendo beats Universal Entertainment on 13 of the 13 factors compared between the two stocks.

About Universal Entertainment

(Get Free Report)

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

About Nintendo

(Get Free Report)

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.

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