Simplicity Esports and Gaming (OTCMKTS:WINR) versus Nintendo (OTCMKTS:NTDOY) Head-To-Head Analysis

Nintendo (OTCMKTS:NTDOY) and Simplicity Esports and Gaming (OTCMKTS:WINR) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Nintendo and Simplicity Esports and Gaming, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	1	1	2	1	2.60
Simplicity Esports and Gaming	0	0	0	0	0.00

Given Simplicity Esports and Gaming’s higher probable upside, analysts clearly believe Simplicity Esports and Gaming is more favorable than Nintendo.

Earnings and Valuation

This table compares Nintendo and Simplicity Esports and Gaming”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nintendo	$7.65 billion	15.02	$1.84 billion	$0.53	41.74
Simplicity Esports and Gaming	N/A	N/A	N/A	($1.79)	N/A

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

Insider and Institutional Ownership

0.0% of Nintendo shares are owned by institutional investors. 15.4% of Simplicity Esports and Gaming shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Nintendo and Simplicity Esports and Gaming’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nintendo	19.61%	9.77%	7.81%
Simplicity Esports and Gaming	N/A	N/A	N/A

Summary

Nintendo beats Simplicity Esports and Gaming on 9 of the 11 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 Simplicity Esports and Gaming

Simplicity Esports and Gaming Company operates as an esports company in the United States and Brazil. It owns and manages professional esports teams, such as Flamengo Esports, one of the top League of Legends team in Latin America. It holds online, play-at-home esports tournaments, allowing gamers to compete for cash and prizes from the comfort of their homes. It also collects and royalty from over 40 esports gaming centers, owned by franchisees. The centers blend the latest high performance gaming PCs and consoles for casual and competitive gaming, sales of gaming related merchandise and equipment, and organized grassroots leagues and tournaments.