Nintendo (OTCMKTS:NTDOY – Get Free Report) and Frontdoor (NASDAQ:FTDR – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Profitability
This table compares Nintendo and Frontdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nintendo | 21.00% | 16.11% | 12.47% |
| Frontdoor | 12.72% | 120.90% | 14.86% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Nintendo and Frontdoor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nintendo | 1 | 4 | 2 | 1 | 2.38 |
| Frontdoor | 0 | 2 | 4 | 0 | 2.67 |
Valuation and Earnings
This table compares Nintendo and Frontdoor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nintendo | $15.37 billion | 4.26 | $2.80 billion | $0.60 | 21.20 |
| Frontdoor | $2.09 billion | 3.05 | $255.00 million | $3.49 | 26.03 |
Nintendo has higher revenue and earnings than Frontdoor. Nintendo is trading at a lower price-to-earnings ratio than Frontdoor, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Nintendo has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Frontdoor has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Institutional and Insider Ownership
0.0% of Nintendo shares are owned by institutional investors. 1.6% of Frontdoor shares are owned 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
Frontdoor beats Nintendo on 9 of the 15 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 Frontdoor
Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
Receive News & Ratings for Nintendo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nintendo and related companies with MarketBeat.com's FREE daily email newsletter.
