Nintendo (OTCMKTS:NTDOY) & Allied Gaming & Entertainment (NASDAQ:AGAE) Financial Review

Allied Gaming & Entertainment (NASDAQ:AGAE) and Nintendo (OTCMKTS:NTDOY) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Allied Gaming & Entertainment and Nintendo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Gaming & Entertainment	-280.09%	-19.56%	-11.82%
Nintendo	21.10%	12.26%	9.65%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Allied Gaming & Entertainment and Nintendo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Gaming & Entertainment	1	0	0	0	1.00
Nintendo	1	1	2	2	2.83

Institutional and Insider Ownership

3.2% of Allied Gaming & Entertainment shares are owned by institutional investors. Comparatively, 0.0% of Nintendo shares are owned by institutional investors. 39.4% of Allied Gaming & Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Allied Gaming & Entertainment and Nintendo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Gaming & Entertainment	$9.08 million	1.79	-$16.76 million	($0.54)	-0.79
Nintendo	$7.65 billion	11.34	$1.84 billion	$0.53	31.51

Nintendo has higher revenue and earnings than Allied Gaming & Entertainment. Allied Gaming & Entertainment is trading at a lower price-to-earnings ratio than Nintendo, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Allied Gaming & Entertainment has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Nintendo has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Summary

Nintendo beats Allied Gaming & Entertainment on 11 of the 14 factors compared between the two stocks.

About Allied Gaming & Entertainment

Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.

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.