Financial Comparison: UbiSoft Entertainment (OTCMKTS:UBSFY) and Take-Two Interactive Software (NASDAQ:TTWO)

UbiSoft Entertainment (OTCMKTS:UBSFY) and Take-Two Interactive Software (NASDAQ:TTWO) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

This table compares UbiSoft Entertainment and Take-Two Interactive Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UbiSoft Entertainment	N/A	N/A	N/A
Take-Two Interactive Software	-72.92%	7.33%	2.81%

Risk & Volatility

UbiSoft Entertainment has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares UbiSoft Entertainment and Take-Two Interactive Software”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UbiSoft Entertainment	$2.04 billion	0.63	-$170.71 million	N/A	N/A
Take-Two Interactive Software	$5.63 billion	8.06	-$4.48 billion	($23.94)	-10.29

UbiSoft Entertainment has higher earnings, but lower revenue than Take-Two Interactive Software.

Institutional and Insider Ownership

0.1% of UbiSoft Entertainment shares are owned by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are owned by institutional investors. 1.3% of Take-Two Interactive Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for UbiSoft Entertainment and Take-Two Interactive Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UbiSoft Entertainment	1	8	1	2	2.33
Take-Two Interactive Software	0	2	18	0	2.90

Take-Two Interactive Software has a consensus target price of $248.32, suggesting a potential upside of 0.83%. Given Take-Two Interactive Software’s stronger consensus rating and higher probable upside, analysts clearly believe Take-Two Interactive Software is more favorable than UbiSoft Entertainment.

Summary

Take-Two Interactive Software beats UbiSoft Entertainment on 10 of the 13 factors compared between the two stocks.

About UbiSoft Entertainment

Ubisoft Entertainment SA produce, publishes, and distributes video games for consoles, PC, smartphones, and tablets in both physical and digital formats in Europe, North America, and internationally. The company designs and develops software, including scenarios, animation, gameplay, layouts, and game rules, as well as develops design tools and game engines. It is involved in the development in the area of online and mobile gaming; and film business. Ubisoft Entertainment SA was incorporated in 1986 and is headquartered in Saint-Mandé, France.

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.