Financial Contrast: Nintendo (OTCMKTS:NTDOY) versus Full House Resorts (NASDAQ:FLL)

Nintendo (OTCMKTS:NTDOY) and Full House Resorts (NASDAQ:FLL) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Valuation & Earnings

This table compares Nintendo and Full House Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nintendo	$15.37 billion	3.93	$2.80 billion	$0.60	19.57
Full House Resorts	$302.38 million	0.28	-$40.20 million	($1.07)	-2.18

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Nintendo and Full House Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	1	4	2	1	2.38
Full House Resorts	1	1	2	0	2.25

Full House Resorts has a consensus price target of $4.00, suggesting a potential upside of 71.75%. Given Full House Resorts’ higher possible upside, analysts clearly believe Full House Resorts is more favorable than Nintendo.

Insider & Institutional Ownership

0.0% of Nintendo shares are held by institutional investors. Comparatively, 37.7% of Full House Resorts shares are held by institutional investors. 10.6% of Full House Resorts shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Nintendo and Full House Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nintendo	18.33%	13.74%	10.65%
Full House Resorts	-12.79%	-473.31%	-5.99%

Risk and Volatility

Nintendo has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Full House Resorts has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Summary

Nintendo beats Full House Resorts on 10 of the 14 factors compared between the two stocks.

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.

About Full House Resorts

Full House Resorts, Inc. owns, leases, operates, develops, manages, and invests in casinos, and related hospitality and entertainment facilities in the United States. It operates through Midwest & South, West, and Contracted Sports Wagering segments. The company's properties include American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Rising Star Casino Resort in Rising Sun, Indiana; Bronco Billy's Casino and Chamonix Casino Hotel in Cripple Creek, Colorado; Stockman's Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada. It also offers online sports wagering services. The company was incorporated in 1987 and is headquartered in Las Vegas, Nevada.