Analyzing Snail (NASDAQ:SNAL) and Capcom (OTCMKTS:CCOEY)

Capcom (OTCMKTS:CCOEY) and Snail (NASDAQ:SNAL) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Capcom and Snail, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capcom	0	1	1	0	2.50
Snail	1	0	0	0	1.00

Volatility & Risk

Capcom has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Snail has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares Capcom and Snail”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capcom	$1.11 billion	12.21	$319.78 million	$0.48	26.58
Snail	$84.47 million	0.42	$1.83 million	($0.46)	-2.09

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

Profitability

This table compares Capcom and Snail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capcom	31.30%	27.58%	21.33%
Snail	-4.80%	-1,183.47%	14.24%

Insider and Institutional Ownership

0.4% of Snail shares are held by institutional investors. 78.2% of Snail shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Capcom beats Snail on 11 of the 13 factors compared between the two stocks.

About Capcom

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.

About Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.