Nintendo (OTCMKTS:NTDOY) vs. OneSpaWorld (NASDAQ:OSW) Head to Head Comparison

OneSpaWorld (NASDAQ:OSW) and Nintendo (OTCMKTS:NTDOY) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for OneSpaWorld and Nintendo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpaWorld	0	1	5	1	3.00
Nintendo	2	3	3	1	2.33

OneSpaWorld presently has a consensus price target of $30.60, indicating a potential upside of 33.51%. Given OneSpaWorld’s stronger consensus rating and higher probable upside, equities research analysts clearly believe OneSpaWorld is more favorable than Nintendo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OneSpaWorld	8.02%	18.36%	14.28%
Nintendo	21.00%	16.31%	12.59%

Institutional & Insider Ownership

96.0% of OneSpaWorld shares are owned by institutional investors. Comparatively, 0.0% of Nintendo shares are owned by institutional investors. 3.6% of OneSpaWorld shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares OneSpaWorld and Nintendo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneSpaWorld	$961.00 million	2.42	$71.62 million	$0.79	29.01
Nintendo	$15.37 billion	4.14	$2.80 billion	$0.66	18.73

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

Risk & Volatility

OneSpaWorld has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Dividends

OneSpaWorld pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. OneSpaWorld pays out 25.3% of its earnings in the form of a dividend. Nintendo pays out 48.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

OneSpaWorld beats Nintendo on 11 of the 16 factors compared between the two stocks.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.

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.