Financial Analysis: Flutter Entertainment (NYSE:FLUT) & Take-Two Interactive Software (NASDAQ:TTWO)

Take-Two Interactive Software (NASDAQ:TTWOGet Free Report) and Flutter Entertainment (NYSE:FLUTGet Free Report) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Institutional & Insider Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. 1.3% of Take-Two Interactive Software shares are owned by company insiders. Comparatively, 0.1% of Flutter Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Take-Two Interactive Software and Flutter Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Take-Two Interactive Software 1 1 16 1 2.89
Flutter Entertainment 2 6 15 2 2.68

Take-Two Interactive Software presently has a consensus price target of $284.44, suggesting a potential upside of 39.28%. Flutter Entertainment has a consensus price target of $234.65, suggesting a potential upside of 120.09%. Given Flutter Entertainment’s higher possible upside, analysts clearly believe Flutter Entertainment is more favorable than Take-Two Interactive Software.

Valuation and Earnings

This table compares Take-Two Interactive Software and Flutter Entertainment”s gross 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 6.71 -$4.48 billion ($22.38) -9.13
Flutter Entertainment $16.38 billion 1.14 -$310.00 million ($1.80) -59.23

Flutter Entertainment has higher revenue and earnings than Take-Two Interactive Software. Flutter Entertainment is trading at a lower price-to-earnings ratio than Take-Two Interactive Software, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Take-Two Interactive Software -60.45% 17.73% 5.71%
Flutter Entertainment -1.89% 12.12% 4.19%

Risk and Volatility

Take-Two Interactive Software has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Flutter Entertainment has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500.

Summary

Take-Two Interactive Software beats Flutter Entertainment on 8 of the 15 factors compared between the two stocks.

About Take-Two Interactive Software

(Get Free Report)

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 Flutter Entertainment

(Get Free Report)

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting. In addition, it provides online poker, casino, and rummy. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, sisal.com, and maxbet.rs websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. Flutter Entertainment plc was incorporated in 1958 and is headquartered in Dublin, Ireland.

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