Financial Survey: CuriosityStream (NASDAQ:CURI) and Take-Two Interactive Software (NASDAQ:TTWO)

Take-Two Interactive Software (NASDAQ:TTWO) and CuriosityStream (NASDAQ:CURI) are both communication services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Risk & Volatility

Take-Two Interactive Software has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, CuriosityStream has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Insider & Institutional Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 6.8% of CuriosityStream shares are owned by institutional investors. 1.1% of Take-Two Interactive Software shares are owned by insiders. Comparatively, 31.1% of CuriosityStream shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Take-Two Interactive Software	-4.48%	14.68%	5.22%
CuriosityStream	-11.26%	-18.46%	-10.83%

Earnings & Valuation

This table compares Take-Two Interactive Software and CuriosityStream”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Take-Two Interactive Software	$6.66 billion	6.82	-$298.20 million	($1.62)	-149.95
CuriosityStream	$71.66 million	2.01	-$6.43 million	($0.13)	-18.77

CuriosityStream 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 CuriosityStream, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Take-Two Interactive Software and CuriosityStream, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Take-Two Interactive Software	1	0	16	2	3.00
CuriosityStream	0	2	3	1	2.83

Take-Two Interactive Software presently has a consensus target price of $294.44, suggesting a potential upside of 21.21%. CuriosityStream has a consensus target price of $6.00, suggesting a potential upside of 145.90%. Given CuriosityStream’s higher possible upside, analysts clearly believe CuriosityStream is more favorable than Take-Two Interactive Software.

Summary

Take-Two Interactive Software beats CuriosityStream on 9 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 CuriosityStream

CuriosityStream Inc. operates as a factual content streaming service and media company. The company provides premium video and audio programming services in various categories of factual entertainment, including science, history, society, nature, lifestyle, and technology through direct subscription video on-demand (SVoD) platforms accessible by internet connected devices, or indirectly via distribution partners who deliver CuriosityStream content via distributor's platform or system, as well as through bundled content licenses for SVoD and linear offerings, talks and courses, and partner bulk sales. It offers streaming content through devices, including televisions, set-top boxes, computers, streaming media players, game consoles, and mobile devices. The company was founded in 2015 and is based in Silver Spring, Maryland.