Head-To-Head Contrast: Nintendo (NTDOY) and Its Peers

Nintendo (OTCMKTS:NTDOY) is one of 166 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it contrast to its peers? We will compare Nintendo to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Nintendo and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	2	3	3	1	2.33
Nintendo Competitors	1444	3449	5291	197	2.41

As a group, “Diversified Consumer Services” companies have a potential upside of 63.23%. Given Nintendo’s peers stronger consensus rating and higher probable upside, analysts clearly believe Nintendo has less favorable growth aspects than its peers.

Institutional and Insider Ownership

0.0% of Nintendo shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 19.5% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Nintendo has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Nintendo’s peers have a beta of 0.50, indicating that their average stock price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Nintendo and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nintendo	$15.37 billion	$2.80 billion	19.85
Nintendo Competitors	$3.23 billion	$219.82 million	11.78

Nintendo has higher revenue and earnings than its peers. Nintendo is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Nintendo and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nintendo	21.00%	16.31%	12.59%
Nintendo Competitors	-3.00%	-28.34%	2.46%

Dividends

Nintendo pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. Nintendo pays out 48.5% of its earnings in the form of a dividend. As a group, “Diversified Consumer Services” companies pay a dividend yield of 6.0% and pay out 36.3% of their earnings in the form of a dividend. Nintendo lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Nintendo peers beat Nintendo on 8 of the 15 factors compared.

Nintendo Company Profile

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.