Head-To-Head Comparison: Rush Street Interactive (NYSE:RSI) & Nintendo (OTCMKTS:NTDOY)

Nintendo (OTCMKTS:NTDOY) and Rush Street Interactive (NYSE:RSI) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Earnings and Valuation

This table compares Nintendo and Rush Street Interactive”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nintendo	$7.65 billion	14.38	$1.84 billion	$0.53	39.94
Rush Street Interactive	$1.06 billion	3.77	$2.39 million	$0.25	69.94

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

Institutional & Insider Ownership

0.0% of Nintendo shares are owned by institutional investors. Comparatively, 24.8% of Rush Street Interactive shares are owned by institutional investors. 56.9% of Rush Street Interactive shares are owned by company 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 Nintendo and Rush Street Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nintendo	19.61%	9.77%	7.81%
Rush Street Interactive	2.83%	17.11%	8.27%

Analyst Ratings

This is a summary of recent ratings and price targets for Nintendo and Rush Street Interactive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	1	1	2	1	2.60
Rush Street Interactive	0	3	7	1	2.82

Rush Street Interactive has a consensus price target of $20.75, indicating a potential upside of 18.67%. Given Rush Street Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Rush Street Interactive is more favorable than Nintendo.

Volatility and Risk

Nintendo has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Rush Street Interactive has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Summary

Rush Street Interactive beats Nintendo on 9 of the 14 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 Rush Street Interactive

Rush Street Interactive, Inc. operates as an online casino and sports betting company in the United States, Canada, Mexico, and rest of Latin America. It provides real-money online casino, online and retail sports betting, and social gaming services. In addition, the company offers full suite of games comprising of bricks-and-mortar casinos, table games, and slot machines. The company markets its online casino and sports betting under BetRivers, PlaySugarHouse, and RushBet brands. Rush Street Interactive, Inc. was founded in 2012 and is headquartered in Chicago, Illinois.