Head-To-Head Analysis: Nintendo (OTCMKTS:NTDOY) vs. Capcom (OTCMKTS:CCOEY)

Nintendo (OTCMKTS:NTDOY) and Capcom (OTCMKTS:CCOEY) are both large-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nintendo	18.91%	13.03%	10.18%
Capcom	32.82%	26.93%	21.51%

Risk & Volatility

Nintendo has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, Capcom has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Dividends

Nintendo pays an annual dividend of $0.08 per share and has a dividend yield of 0.8%. Capcom pays an annual dividend of $0.07 per share and has a dividend yield of 0.6%. Nintendo pays out 14.0% of its earnings in the form of a dividend. Capcom pays out 13.7% 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nintendo and Capcom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	1	4	1	2	2.50
Capcom	0	1	0	0	2.00

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nintendo	$7.65 billion	7.03	$1.84 billion	$0.57	18.33
Capcom	$1.11 billion	10.45	$319.78 million	$0.51	21.41

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

Summary

Nintendo beats Capcom on 8 of the 15 factors compared between the two stocks.

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.

About Capcom

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.