Analyzing Take-Two Interactive Software (NASDAQ:TTWO) and VTEX (NYSE:VTEX)

VTEX (NYSE:VTEX) and Take-Two Interactive Software (NASDAQ:TTWO) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VTEX	3.97%	3.60%	2.53%
Take-Two Interactive Software	-66.38%	0.51%	0.25%

Volatility & Risk

VTEX has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares VTEX and Take-Two Interactive Software”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VTEX	$225.91 million	5.26	-$13.69 million	$0.06	107.58
Take-Two Interactive Software	$5.35 billion	6.24	-$3.74 billion	($21.16)	-8.98

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	0	5	0	3.00
Take-Two Interactive Software	0	2	18	1	2.95

VTEX currently has a consensus target price of $10.40, indicating a potential upside of 61.12%. Take-Two Interactive Software has a consensus target price of $194.25, indicating a potential upside of 2.22%. Given VTEX’s stronger consensus rating and higher possible upside, equities research analysts clearly believe VTEX is more favorable than Take-Two Interactive Software.

Institutional & Insider Ownership

63.7% of VTEX shares are owned by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are owned by institutional investors. 40.9% of VTEX shares are owned by company insiders. Comparatively, 1.5% of Take-Two Interactive Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

VTEX beats Take-Two Interactive Software on 10 of the 15 factors compared between the two stocks.

About VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.

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.