Financial Review: Trend Micro (OTCMKTS:TMICY) & Take-Two Interactive Software (NASDAQ:TTWO)

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

Earnings & Valuation

This table compares Take-Two Interactive Software and Trend Micro’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	$5.35 billion	4.61	-$1.12 billion	($8.58)	-16.84
Trend Micro	$1.77 billion	3.94	$76.20 million	$0.59	84.07

Trend Micro 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 Trend Micro, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Take-Two Interactive Software	-26.90%	3.03%	1.72%
Trend Micro	4.55%	7.10%	3.21%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Take-Two Interactive Software and Trend Micro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Take-Two Interactive Software	0	4	18	0	2.82
Trend Micro	0	0	0	0	N/A

Take-Two Interactive Software presently has a consensus target price of $177.61, indicating a potential upside of 22.55%. Given Take-Two Interactive Software’s higher possible upside, analysts plainly believe Take-Two Interactive Software is more favorable than Trend Micro.

Risk and Volatility

Take-Two Interactive Software has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 0.0% of Trend Micro shares are owned by institutional investors. 1.4% of Take-Two Interactive Software shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Take-Two Interactive Software beats Trend Micro on 7 of the 13 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. The company offers its products under the Rockstar Games, 2K, Private Division, and Zynga names. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, LA Noire, and Red Dead Redemption names. 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. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; and PGA TOUR 2K. Further, the company offers Kerbal Space Program, OlliOlli World, and The Outer Worlds and Ancestors: The Humankind Odyssey; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Merge Dragons, Merge Magic, Monster Legends, Toon Blast, Top Eleven, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and a volume of mobile titles, including Fill the Fridge!, Parking Jam 3D, Pressure Washing Run, and Pull the Pin. 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 Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.