Roblox (NYSE:RBLX) and Capcom (OTCMKTS:CCOEY) Head to Head Review

Roblox (NYSE:RBLX) and Capcom (OTCMKTS:CCOEY) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Roblox and Capcom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roblox	-23.67%	-372.96%	-13.06%
Capcom	30.10%	26.91%	20.87%

Institutional and Insider Ownership

94.5% of Roblox shares are owned by institutional investors. 12.9% of Roblox shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Roblox and Capcom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$3.60 billion	22.41	-$935.38 million	($1.43)	-87.51
Capcom	$1.11 billion	13.17	$319.78 million	$0.44	31.27

Capcom has lower revenue, but higher earnings than Roblox. Roblox is trading at a lower price-to-earnings ratio than Capcom, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Roblox has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Capcom has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Roblox and Capcom, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	1	4	19	0	2.75
Capcom	0	0	1	0	3.00

Roblox currently has a consensus price target of $117.5909, indicating a potential downside of 6.03%. Given Roblox’s higher possible upside, equities analysts plainly believe Roblox is more favorable than Capcom.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.

About Capcom

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.