Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) and Gaia (NASDAQ:GAIA – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Analyst Ratings
This is a breakdown of current recommendations for Take-Two Interactive Software and Gaia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Take-Two Interactive Software | 1 | 1 | 19 | 1 | 2.91 |
| Gaia | 1 | 0 | 0 | 0 | 1.00 |
Take-Two Interactive Software presently has a consensus target price of $296.95, indicating a potential upside of 40.13%. Given Take-Two Interactive Software’s stronger consensus rating and higher probable upside, analysts clearly believe Take-Two Interactive Software is more favorable than Gaia.
Risk & Volatility
Valuation & Earnings
This table compares Take-Two Interactive Software and Gaia”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Take-Two Interactive Software | $6.69 billion | 5.93 | -$298.20 million | ($1.73) | -122.49 |
| Gaia | $98.12 million | 0.40 | -$4.49 million | ($0.24) | -6.40 |
Gaia has lower revenue, but higher earnings than Take-Two Interactive Software. Take-Two Interactive Software is trading at a lower price-to-earnings ratio than Gaia, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Take-Two Interactive Software and Gaia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Take-Two Interactive Software | -4.79% | 12.25% | 4.46% |
| Gaia | -6.08% | -5.82% | -3.85% |
Insider & Institutional Ownership
95.5% of Take-Two Interactive Software shares are held by institutional investors. Comparatively, 40.5% of Gaia shares are held by institutional investors. 1.1% of Take-Two Interactive Software shares are held by insiders. Comparatively, 26.0% of Gaia shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Take-Two Interactive Software beats Gaia on 11 of the 15 factors compared between the two stocks.
About Take-Two Interactive Software
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.
About Gaia
Gaia, Inc. operates a digital video subscription service and online community for underserved member base in the United States, Canada, Australia, and internationally. The company has a digital content library with various titles in Spanish, German, and French languages available to its subscribers on internet connected devices. Its network includes Yoga channel, which provides access to streaming yoga, Eastern arts, and other movement based classes; Transformation channel that offers content in the areas of spiritual growth, personal development, and expanded consciousness; Alternative Healing channel, which features content focused on food and nutrition, holistic healing, alternative and integrative medicines, and longevity; and Seeking Truth channel that provides access to interviews and presentations in the ancient wisdom and metaphysics genre. The company was formerly known as Gaiam, Inc. and changed its name to Gaia, Inc. in July 2016. Gaia, Inc. was incorporated in 1988 and is headquartered in Louisville, Colorado.
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