Take-Two Interactive Software (NASDAQ:TTWO) vs. Zeta Global (NYSE:ZETA) Critical Review

Take-Two Interactive Software (NASDAQ:TTWO) and Zeta Global (NYSE:ZETA) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Risk and Volatility

Take-Two Interactive Software has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Zeta Global has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Insider & Institutional Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 75.8% of Zeta Global shares are owned by institutional investors. 1.5% of Take-Two Interactive Software shares are owned by insiders. Comparatively, 25.5% of Zeta Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Take-Two Interactive Software and Zeta Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Take-Two Interactive Software	0	2	18	1	2.95
Zeta Global	0	3	11	1	2.87

Take-Two Interactive Software presently has a consensus target price of $188.70, indicating a potential upside of 6.24%. Zeta Global has a consensus target price of $39.08, indicating a potential upside of 122.15%. Given Zeta Global’s higher probable upside, analysts clearly believe Zeta Global is more favorable than Take-Two Interactive Software.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Take-Two Interactive Software	-66.38%	0.51%	0.25%
Zeta Global	-13.35%	-45.22%	-18.84%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Take-Two Interactive Software	$5.35 billion	5.83	-$3.74 billion	($21.16)	-8.39
Zeta Global	$822.09 million	4.71	-$187.48 million	($0.70)	-25.13

Zeta Global has lower revenue, but higher earnings than Take-Two Interactive Software. Zeta Global is trading at a lower price-to-earnings ratio than Take-Two Interactive Software, indicating that it is currently the more affordable of the two stocks.

Summary

Take-Two Interactive Software beats Zeta Global on 8 of the 14 factors compared between the two stocks.

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.

About Zeta Global

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.