Nintendo (OTCMKTS:NTDOY – Get Free Report) and PENN Entertainment (NASDAQ:PENN – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Earnings & Valuation
This table compares Nintendo and PENN Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nintendo | $7.65 billion | 9.49 | $1.84 billion | $0.57 | 24.53 |
| PENN Entertainment | $6.58 billion | 0.26 | -$311.50 million | ($6.35) | -2.05 |
Profitability
This table compares Nintendo and PENN Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nintendo | 18.91% | 13.16% | 10.33% |
| PENN Entertainment | -13.24% | -4.59% | -0.83% |
Analyst Recommendations
This is a breakdown of recent recommendations for Nintendo and PENN Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nintendo | 1 | 4 | 2 | 2 | 2.56 |
| PENN Entertainment | 2 | 6 | 9 | 0 | 2.41 |
PENN Entertainment has a consensus target price of $19.67, indicating a potential upside of 51.05%. Given PENN Entertainment’s higher probable upside, analysts clearly believe PENN Entertainment is more favorable than Nintendo.
Risk & Volatility
Nintendo has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Insider & Institutional Ownership
0.0% of Nintendo shares are owned by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are owned by institutional investors. 2.7% of PENN Entertainment shares are owned by company 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.
Summary
Nintendo beats PENN Entertainment on 10 of the 15 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 PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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