Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) and Light & Wonder (NASDAQ:LNW – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.
Volatility & Risk
Take-Two Interactive Software has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Light & Wonder has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Earnings and Valuation
This table compares Take-Two Interactive Software and Light & Wonder”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 | $5.63 billion | 8.11 | -$4.48 billion | ($22.59) | -10.95 |
| Light & Wonder | $3.22 billion | 2.31 | $336.00 million | $4.59 | 19.86 |
Light & Wonder 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 Light & Wonder, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Take-Two Interactive Software and Light & Wonder, 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 |
| Light & Wonder | 1 | 4 | 5 | 0 | 2.40 |
Take-Two Interactive Software presently has a consensus price target of $266.33, suggesting a potential upside of 7.65%. Light & Wonder has a consensus price target of $105.00, suggesting a potential upside of 15.21%. Given Light & Wonder’s higher probable upside, analysts plainly believe Light & Wonder is more favorable than Take-Two Interactive Software.
Insider & Institutional Ownership
95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 88.1% of Light & Wonder shares are owned by institutional investors. 1.3% of Take-Two Interactive Software shares are owned by insiders. Comparatively, 2.2% of Light & Wonder shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Take-Two Interactive Software and Light & Wonder’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% |
| Light & Wonder | 10.89% | 71.17% | 8.73% |
Summary
Light & Wonder 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 Light & Wonder
Light & Wonder, Inc. is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services. The SciPlay segment involves the development and publishing of digital games on mobile and web platforms. The iGaming segment focuses on the provision of digital gaming content, distribution platforms, player account management systems, and services. The company was founded on July 2, 1984 and is headquartered in Las Vegas, NV.
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