Take-Two Interactive Software (NASDAQ: TTWO) and Gravity (NASDAQ:GRVY) are both cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Take-Two Interactive Software and Gravity, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Take-Two Interactive Software 0 4 18 0 2.82
Gravity 0 0 0 0 N/A

Take-Two Interactive Software currently has a consensus target price of $123.48, suggesting a potential upside of 11.47%. Given Take-Two Interactive Software’s higher possible upside, analysts plainly believe Take-Two Interactive Software is more favorable than Gravity.

Earnings and Valuation

This table compares Take-Two Interactive Software and Gravity’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Take-Two Interactive Software $1.78 billion 7.12 $67.30 million $1.61 68.80
Gravity $42.70 million 7.61 $200,000.00 $2.26 41.43

Take-Two Interactive Software has higher revenue and earnings than Gravity. Gravity is trading at a lower price-to-earnings ratio than Take-Two Interactive Software, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Take-Two Interactive Software has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Gravity has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.

Institutional and Insider Ownership

92.4% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 14.0% of Gravity shares are owned by institutional investors. 1.6% of Take-Two Interactive Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.


This table compares Take-Two Interactive Software and Gravity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Take-Two Interactive Software 9.43% 27.78% 10.06%
Gravity 9.78% 26.08% 13.50%


Take-Two Interactive Software beats Gravity on 9 of the 13 factors compared between the two stocks.

About Take-Two Interactive Software

Take-Two Interactive Software, Inc. is a developer, publisher and marketer of entertainment for consumers around the world. The Company develops and publishes products through its labels, Rockstar Games and 2K. It operates through publishing segment. It has a portfolio of software content for the hardware platforms in a range of genres, including action, adventure, family/casual, racing, role-playing, shooter, sports and strategy, which it distributes across the world. The Company’s products are designed for console gaming systems, such as PlayStation 3 and PlayStation 4; Xbox 360 and Xbox One, and personal computers, including smartphones and tablets. Rockstar Games is the developer and publisher of Grand Theft Auto, as well as other franchises, including L.A. Noire, Max Payne, Midnight Club and Red Dead. 2K publishes owned and licensed titles across a range of genres. It has internal development studios in Canada, China, Czech Republic, the United Kingdom and the United States.

About Gravity

Gravity Co., Ltd. is a developer, distributor and publisher of online games in Japan and Taiwan. The Company’s segments include online games, mobile games and other. Its principal product includes Ragnarok Online, which is a multiplayer online role playing game. It categorizes products into over three categories, such as online games; mobile games and applications, and other games and game-related products and services, including character-based merchandise and animation. It offers over five online games, such as Ragnarok Online, Ragnarok Online II, Requiem, Dragonica (Dragon Saga) and R.O.S.E. Online, which are action adventure massively multiplayer online role-playing games (MMORPG). It develops mobile games, including Ragnarok Online-Uprising: Valkyrie, Ragnarok Online Mobile Story and Ragnarok Violet, and also publishes mobile games licensed from third parties. It provides games for game consoles and handheld game consoles, such as Nintendo DS, Xbox 360 and the PlayStation series.

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