Critical Survey: Capcom (OTCMKTS:CCOEY) and Snail (NASDAQ:SNAL)

Snail (NASDAQ:SNAL) and Capcom (OTCMKTS:CCOEY) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Institutional and Insider Ownership

0.4% of Snail shares are held by institutional investors. 78.2% of Snail shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Snail	-4.80%	-1,183.47%	14.24%
Capcom	31.30%	27.58%	21.33%

Earnings & Valuation

This table compares Snail and Capcom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snail	$84.47 million	0.45	$1.83 million	($0.46)	-2.22
Capcom	$1.11 billion	12.65	$319.78 million	$0.48	27.54

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

Analyst Recommendations

This is a summary of recent recommendations for Snail and Capcom, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snail	1	0	0	0	1.00
Capcom	0	1	1	0	2.50

Volatility & Risk

Snail has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Capcom has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Summary

Capcom beats Snail on 11 of the 13 factors compared between the two stocks.

About Snail

Snail, Inc., together with its subsidiaries, researches, develops, markets, publishes, and distributes interactive digital entertainment for consumers worldwide. It offers games, content, and support for various platforms, including game consoles, personal computers, mobile phones, and tablets. Snail, Inc. was founded in 2009 and is headquartered in Culver City, California. Snail, Inc. operates as a subsidiary of Olive Wood Global Development Limited.

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.