Manchester United (NYSE:MANU) & Take-Two Interactive Software (NASDAQ:TTWO) Critical Review

Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) and Manchester United (NYSE:MANU – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Take-Two Interactive Software and Manchester United, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Take-Two Interactive Software 1 1 18 1 2.90
Manchester United 1 0 0 0 1.00

Take-Two Interactive Software currently has a consensus price target of $298.89, suggesting a potential upside of 39.93%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, analysts plainly believe Take-Two Interactive Software is more favorable than Manchester United.

Risk and Volatility

Take-Two Interactive Software has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Manchester United has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares Take-Two Interactive Software and Manchester United”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Take-Two Interactive Software $6.66 billion 6.00 -$298.20 million ($1.73) -123.47
Manchester United $677.65 million 5.23 -$57.64 million ($0.33) -62.25

Manchester United 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 Manchester United, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Take-Two Interactive Software -4.79% 12.25% 4.46%
Manchester United -6.36% -12.22% -1.32%

Insider & Institutional Ownership

95.5% of Take-Two Interactive Software shares are held by institutional investors. Comparatively, 23.3% of Manchester United shares are held by institutional investors. 1.1% of Take-Two Interactive Software shares are held by company insiders. Comparatively, 68.6% of Manchester United shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Take-Two Interactive Software beats Manchester United on 11 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 Manchester United

(Get Free Report)

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.

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