Analyzing Nintendo (OTCMKTS:NTDOY) & TAL Education Group (NYSE:TAL)

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

Insider & Institutional Ownership

37.8% of TAL Education Group shares are owned by institutional investors. Comparatively, 0.0% of Nintendo shares are owned by institutional investors. 1.8% of TAL Education Group shares are owned by company 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.

Earnings & Valuation

This table compares TAL Education Group and Nintendo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TAL Education Group	$3.01 billion	2.22	$530.75 million	$1.61	7.49
Nintendo	$15.37 billion	4.17	$2.80 billion	$0.66	18.85

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

Risk and Volatility

TAL Education Group has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TAL Education Group and Nintendo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TAL Education Group	0	2	1	1	2.75
Nintendo	2	3	3	1	2.33

TAL Education Group presently has a consensus target price of $14.80, indicating a potential upside of 22.70%. Given TAL Education Group’s stronger consensus rating and higher possible upside, analysts plainly believe TAL Education Group is more favorable than Nintendo.

Profitability

This table compares TAL Education Group and Nintendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TAL Education Group	28.43%	24.55%	15.08%
Nintendo	21.00%	16.31%	12.59%

Summary

TAL Education Group beats Nintendo on 8 of the 14 factors compared between the two stocks.

About TAL Education Group

TAL Education Group provides K-12 after-school tutoring services in the People’s Republic of China. It provides learning services primarily through small-classes services; personalized premium services; and learning content solutions, such as print books, smart books, mobile apps, and AI-driven learning devices. The company also operates www.xueersi.com, an online education platform; provides investment management and consulting services; develops and sells software and networks, as well as related consulting services; and sells educational materials and products. It offers its services under the Haoweilai and Think Academy brands. TAL Education Group was founded in 2003 and is headquartered in Beijing, the People’s Republic of China.

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.