2U (NASDAQ:TWOU) and TAKE-TWO INTERACTIVE SOFTWARE (NASDAQ:TTWO) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Valuation & Earnings
This table compares 2U 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|
|2U||$411.77 million||8.87||-$38.33 million||($0.63)||-99.16|
|TAKE-TWO INTERACTIVE SOFTWARE||$1.79 billion||6.41||$173.53 million||$1.75||58.07|
Institutional & Insider Ownership
96.0% of TAKE-TWO INTERACTIVE SOFTWARE shares are owned by institutional investors. 5.0% of 2U shares are owned by company insiders. Comparatively, 1.1% 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.
This is a summary of current recommendations for 2U and TAKE-TWO INTERACTIVE SOFTWARE, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|TAKE-TWO INTERACTIVE SOFTWARE||1||1||18||0||2.85|
2U presently has a consensus target price of $87.00, suggesting a potential upside of 39.27%. TAKE-TWO INTERACTIVE SOFTWARE has a consensus target price of $132.47, suggesting a potential upside of 30.36%. Given 2U’s higher possible upside, research analysts plainly believe 2U is more favorable than TAKE-TWO INTERACTIVE SOFTWARE.
This table compares 2U and TAKE-TWO INTERACTIVE SOFTWARE’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|TAKE-TWO INTERACTIVE SOFTWARE||14.26%||28.92%||13.88%|
Volatility & Risk
2U has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, TAKE-TWO INTERACTIVE SOFTWARE has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
TAKE-TWO INTERACTIVE SOFTWARE beats 2U on 11 of the 14 factors compared between the two stocks.
2U Company Profile
2U, Inc. operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Course Segment. It offers front-end technology and services, including online learning platform, student and faculty and immersion support, accessibility, admissions application advising, in-program student field placements, and faculty recruiting. The company provides back-end technology and services comprising graduate program launch and operations applications, university systems integration applications, content management system, admission application processing portal, customer relationship management, content development, student acquisition, and state authorization services. The company was formerly known as 2Tor Inc. and changed its name to 2U, Inc. in October 2012. 2U, Inc. was founded in 2008 and is headquartered in Lanham, Maryland.
TAKE-TWO INTERACTIVE SOFTWARE Company Profile
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels, as well as under Private Division and Social Point labels. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead names through developing sequels; and offers downloadable episodes, content and virtual currency, and releasing titles for smartphones and tablets. The company also develops brands in other genres, including the L.A. Noire, Bully, and Manhunt franchises. In addition, the company publishes various entertainment properties across platforms and a range of genres, including shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Evolve. Further, it publishes sports simulation titles, including NBA 2K series, a basketball video game; and the WWE 2K professional wrestling series. Additionally, the company offers free-to-play mobile games, such as Dragon City and Monster Legends. Its products are designed for console gaming systems, such as Sony’s PlayStation 3 and PlayStation 4, and Microsoft’s Xbox 360 and Xbox One; and personal computers 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 founded in 1993 and is headquartered in New York, New York.
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