GameSquare (NASDAQ:GAME) & Take-Two Interactive Software (NASDAQ:TTWO) Critical Analysis

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

Analyst Recommendations

This is a breakdown of recent recommendations for Take-Two Interactive Software and GameSquare, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Take-Two Interactive Software	1	3	20	0	2.79
GameSquare	1	0	0	0	1.00

Take-Two Interactive Software currently has a consensus target price of $266.33, suggesting a potential upside of 6.86%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, equities analysts clearly believe Take-Two Interactive Software is more favorable than GameSquare.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Take-Two Interactive Software	-64.26%	12.49%	4.43%
GameSquare	-49.30%	-168.15%	-48.86%

Valuation & Earnings

This table compares Take-Two Interactive Software and GameSquare”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Take-Two Interactive Software	$5.63 billion	8.17	-$4.48 billion	($22.59)	-11.03
GameSquare	$96.20 million	0.45	-$48.75 million	($1.04)	-0.42

GameSquare 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 GameSquare, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.5% of Take-Two Interactive Software shares are held by institutional investors. Comparatively, 64.3% of GameSquare shares are held by institutional investors. 1.3% of Take-Two Interactive Software shares are held by insiders. Comparatively, 5.1% of GameSquare shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Take-Two Interactive Software has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, GameSquare has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Summary

Take-Two Interactive Software beats GameSquare 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 GameSquare

GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. Its platform to connect with gaming and youth culture audiences. The company’s end-to-end platform includes Code Red Esports Ltd., an esports talent agency; GCN, a digital media company focusing on the gaming and esports audience; Zoned, a gaming and lifestyle marketing agency; Complexity Gaming, a esports organization operating; Fourth Frame Studios, a creative production studio; and Mission Supply, a merchandise and consumer products business; Frankly Media, programmatic advertising, Stream Hatchet, live streaming analytics, and Sideqik a social influencer marketing platform. The company also engages in providing marketing and creative services, offering leading data and analytics solutions. The company was formerly known as Engine Gaming & Media, Inc. GameSquare Holdings, Inc. is headquartered in Frisco, Texas.