Financial Review: GCL Global (NASDAQ:GCL) vs. Take-Two Interactive Software (NASDAQ:TTWO)

Take-Two Interactive Software (NASDAQ:TTWO) and GCL Global (NASDAQ:GCL) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares Take-Two Interactive Software and GCL Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Take-Two Interactive Software	$5.63 billion	8.40	-$4.48 billion	($22.59)	-11.34
GCL Global	$142.07 million	0.87	$5.59 million	($0.02)	-50.50

GCL Global has lower revenue, but higher earnings than Take-Two Interactive Software. GCL Global 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.

Insider and Institutional Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 36.6% of GCL Global shares are owned by institutional investors. 1.3% of Take-Two Interactive Software shares are owned by insiders. Comparatively, 49.4% of GCL Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Take-Two Interactive Software and GCL Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Take-Two Interactive Software	1	3	20	0	2.79
GCL Global	1	0	0	0	1.00

Take-Two Interactive Software currently has a consensus price target of $266.33, suggesting a potential upside of 4.00%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Take-Two Interactive Software is more favorable than GCL Global.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Take-Two Interactive Software	-64.26%	12.49%	4.43%
GCL Global	N/A	N/A	N/A

Risk and Volatility

Take-Two Interactive Software has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, GCL Global has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Summary

Take-Two Interactive Software beats GCL Global on 10 of the 14 factors compared between the two stocks.

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.

About GCL Global

GCL Global Holdings Ltd. unites people through immersive games and entertainment experiences, enabling creators to deliver engaging content and fun gameplay experiences to gaming communities worldwide with a strategic focus on the rapidly expanding Asian gaming market.

Drawing on a deep understanding of gaming trends and market dynamics, GCL Group leverages its diverse portfolio of digital and physical content to bridge cultures and audiences by introducing Asian-developed IP to a global audience across consoles, PCs, and streaming platforms.