Take-Two Interactive Software Inc. (NASDAQ:TTWO) and Activision Blizzard Inc. (NASDAQ:ATVI), both competing one another are Multimedia & Graphics Software companies. We will contrast their profitability, analyst recommendations, risk, dividends, institutional ownership, earnings and valuation.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Take-Two Interactive Software Inc. | 121 | 1.99 | 106.66M | 3.06 | 40.50 |
| Activision Blizzard Inc. | 54 | 5.09 | 759.29M | 1.75 | 31.62 |
Table 1 showcases the gross revenue, earnings per share and valuation of Take-Two Interactive Software Inc. and Activision Blizzard Inc. Activision Blizzard Inc. seems to has lower revenue and earnings compared to Take-Two Interactive Software Inc. The company with a higher P/E ratio is presently more expensive of the two stocks. Take-Two Interactive Software Inc. has been trading at a higher P/E ratio than Activision Blizzard Inc., which means that it is at the moment the more expensive of the two companies.
Profitability
Table 2 provides us Take-Two Interactive Software Inc. and Activision Blizzard Inc.’s return on equity, return on assets and net margins.
| Net Margins | Return on Equity | Return on Assets | |
| Take-Two Interactive Software Inc. | 88,017,824.72% | 17% | 8% |
| Activision Blizzard Inc. | 1,396,780,721.12% | 13.8% | 9.2% |
Volatility and Risk
Take-Two Interactive Software Inc. has a 0.69 beta, while its volatility is 31.00% which is less volatile than S&P 500. Competitively, Activision Blizzard Inc.’s beta is 0.82 which is 18.00% less volatile than S&P 500.
Liquidity
Take-Two Interactive Software Inc.’s Current Ratio is 1.5 while its Quick Ratio is 1.5. On the competitive side is, Activision Blizzard Inc. which has a 3.4 Current Ratio and a 3.4 Quick Ratio. Activision Blizzard Inc. is better positioned to pay off short and long-term obligations compared to Take-Two Interactive Software Inc.
Analyst Recommendations
The Recommendations and Ratings for Take-Two Interactive Software Inc. and Activision Blizzard Inc. are featured in the next table.
| Sell Ratings | Hold Ratings | Buy Ratings | Rating Score | |
| Take-Two Interactive Software Inc. | 0 | 2 | 9 | 2.82 |
| Activision Blizzard Inc. | 0 | 4 | 17 | 2.81 |
The upside potential is 15.87% for Take-Two Interactive Software Inc. with average target price of $140. On the other hand, Activision Blizzard Inc.’s potential upside is 10.74% and its average target price is $61.05. Based on the analysts belief we can conclude, Take-Two Interactive Software Inc. is looking more favorable than Activision Blizzard Inc.
Institutional & Insider Ownership
Take-Two Interactive Software Inc. and Activision Blizzard Inc. has shares held by institutional investors as follows: 94.9% and 93%. About 0.2% of Take-Two Interactive Software Inc.’s share are held by insiders. Competitively, insiders own roughly 0.6% of Activision Blizzard Inc.’s shares.
Performance
In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
| Performance (W) | Performance (M) | Performance (Q) | Performance (HY) | Performance (Y) | Performance (YTD) | |
| Take-Two Interactive Software Inc. | 1.96% | 6.04% | -6.39% | 10.69% | 16.51% | 20.2% |
| Activision Blizzard Inc. | 0.69% | -2.04% | 0.04% | 20% | 14.66% | 18.55% |
For the past year Take-Two Interactive Software Inc. has stronger performance than Activision Blizzard Inc.
Summary
Take-Two Interactive Software Inc. beats on 10 of the 15 factors Activision Blizzard Inc.
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead names through developing sequels; offering downloadable episodes, and content and virtual currency; and releasing titles for smartphones and tablets. The company also develops brands in other genres, including the L.A. Noire, Bully, and Manhunt franchises. In addition, the company publishes various entertainment properties across platforms and a range of genres, including action, adventure, family/casual, racing, role-playing, shooter, sports, and strategy under the Battleborn, BioShock, Borderlands, Carnival Games, Evolve, Mafia, Sid Meier’s Civilization, and XCOM franchises. Further, it publishes sports simulation titles, including NBA 2K series, a basketball video game; and the WWE 2K professional wrestling series. Additionally, the company offers free-to-play mobile games, such as Dragon City and Monster Legends on iOS and Android platforms. Its products are designed for console gaming systems, such as Sony’s PlayStation 3 and PlayStation 4, and Microsoft’s Xbox 360 and Xbox One; and personal computers 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 founded in 1993 and is headquartered in New York, New York.
Activision Blizzard, Inc. develops and publishes games for video game consoles, personal computers (PC), mobile devices, and online social platforms. The company operates through three segments: Activision Publishing, Inc., Blizzard Entertainment, Inc., and King Digital Entertainment. The company develops, publishes, and sells interactive software products and entertainment content through retail channels or digital downloads; and downloadable content. It also publishes subscription-based massive multiplayer online role-playing games; and strategy and role-playing games. In addition, the company maintains a proprietary online gaming service, Battle.net that facilitates the creation of user generated content, digital distribution, and online social connectivity in its games. Further, it engages in creating original film and television content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. The company serves retailers and distributors, including mass-market retailers, consumer electronics stores, discount warehouses, game specialty stores, and consumers through third-party distribution and licensing arrangements in the United States, Australia, Brazil, Canada, China, France, Germany, Ireland, Italy, Japan, Malta, Mexico, the Netherlands, Romania, Singapore, South Korea, Spain, Sweden, Taiwan, and the United Kingdom. Activision Blizzard, Inc. was incorporated in 1979 and is headquartered in Santa Monica, California.
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