Archon (OTCMKTS:ARHN) and Nintendo (OTCMKTS:NTDOY) Financial Review

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

Volatility and Risk

Nintendo has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Archon has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	0	1	3	2	3.17
Archon	0	0	0	0	0.00

Profitability

This table compares Nintendo and Archon’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%
Archon	N/A	N/A	N/A

Earnings and Valuation

This table compares Nintendo and Archon”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	16.02	$1.84 billion	$0.42	56.17
Archon	N/A	N/A	N/A	N/A	N/A

Nintendo has higher revenue and earnings than Archon.

Insider & Institutional Ownership

0.0% of Nintendo shares are owned by institutional investors. 80.0% of Archon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Nintendo beats Archon on 9 of the 10 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 Archon

Archon Corporation, through its subsidiary, Pioneer Hotel Inc., engages in the ownership, management, and operation of casinos and hotels in the United States. It operates the Pioneer Hotel & Gambling Hall (the Pioneer) in Laughlin, Nevada that consists of a casino. The company also owns real estate properties on Las Vegas Boulevard South in Las Vegas, Nevada; and rental properties that include commercial office space in Dorchester, Massachusetts. Archon Corporation was founded in 1991 and is based in Laughlin, Nevada.