Analyzing Nintendo (OTCMKTS:NTDOY) and Rush Street Interactive (NYSE:RSI)

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

Volatility and Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Street Interactive	$924.08 million	4.19	$2.39 million	$0.25	67.44
Nintendo	$7.65 billion	14.49	$1.84 billion	$0.53	40.26

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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Rush Street Interactive and Nintendo, as reported by MarketBeat.com.

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

Rush Street Interactive currently has a consensus target price of $20.75, suggesting a potential upside of 23.07%. Given Rush Street Interactive’s stronger consensus rating and higher possible upside, equities analysts clearly believe Rush Street Interactive is more favorable than Nintendo.

Institutional & Insider Ownership

24.8% of Rush Street Interactive shares are owned by institutional investors. Comparatively, 0.0% of Nintendo 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, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Rush Street Interactive and Nintendo’s net margins, return on equity and return on assets.

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

Summary

Rush Street Interactive beats Nintendo on 9 of the 14 factors compared between the two stocks.

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.

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.