Universal Entertainment (OTCMKTS:UETMF – Get Free Report) and Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
Volatility & Risk
Universal Entertainment has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Valuation & Earnings
This table compares Universal Entertainment and Take-Two Interactive Software”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Universal Entertainment | $835.53 million | 0.61 | -$102.75 million | ($2.25) | -2.91 |
| Take-Two Interactive Software | $5.80 billion | 8.03 | -$4.48 billion | ($23.94) | -10.54 |
Universal Entertainment has higher earnings, but lower revenue than Take-Two Interactive Software. Take-Two Interactive Software is trading at a lower price-to-earnings ratio than Universal Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Universal Entertainment and Take-Two Interactive Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Universal Entertainment | 0 | 0 | 0 | 0 | 0.00 |
| Take-Two Interactive Software | 1 | 3 | 21 | 1 | 2.85 |
Take-Two Interactive Software has a consensus target price of $256.91, indicating a potential upside of 1.79%. Given Take-Two Interactive Software’s stronger consensus rating and higher probable upside, analysts plainly believe Take-Two Interactive Software is more favorable than Universal Entertainment.
Institutional & Insider Ownership
95.5% of Take-Two Interactive Software shares are held by institutional investors. 1.3% of Take-Two Interactive Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Universal Entertainment and Take-Two Interactive Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Universal Entertainment | -20.60% | 9.72% | 5.72% |
| Take-Two Interactive Software | -72.92% | 7.33% | 2.81% |
Summary
Take-Two Interactive Software beats Universal Entertainment on 9 of the 15 factors compared between the two stocks.
About Universal Entertainment
Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.
About Take-Two Interactive Software
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles 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 incorporated in 1993 and is based in New York, New York.
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