Analyzing Take-Two Interactive Software (NASDAQ:TTWO) and VTEX (NYSE:VTEX)

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

Volatility & Risk

Take-Two Interactive Software has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, VTEX has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Institutional and Insider Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 63.7% of VTEX shares are owned by institutional investors. 1.5% of Take-Two Interactive Software shares are owned by company insiders. Comparatively, 40.9% of VTEX shares are owned by company 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.

Earnings & Valuation

This table compares Take-Two Interactive Software and VTEX”s gross 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	6.17	-$3.74 billion	($21.16)	-8.89
VTEX	$201.52 million	5.64	-$13.69 million	$0.06	103.02

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Take-Two Interactive Software	0	2	18	1	2.95
VTEX	0	0	5	0	3.00

Take-Two Interactive Software presently has a consensus price target of $191.75, indicating a potential upside of 1.96%. VTEX has a consensus price target of $10.40, indicating a potential upside of 68.28%. Given VTEX’s stronger consensus rating and higher possible upside, analysts clearly believe VTEX is more favorable than Take-Two Interactive Software.

Profitability

This table compares Take-Two Interactive Software and VTEX’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%
VTEX	3.97%	3.60%	2.53%

Summary

VTEX beats Take-Two Interactive Software on 9 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 VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.