Nintendo (OTCMKTS:NTDOY) vs. SRM Entertainment (NASDAQ:SRM) Financial Review

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

Valuation and Earnings

This table compares Nintendo and SRM Entertainment’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nintendo	$11.86 billion	5.80	$3.20 billion	$0.75	17.65
SRM Entertainment	$5.76 million	2.07	-$2.05 million	($0.45)	-2.61

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

Institutional and Insider Ownership

0.0% of Nintendo shares are held by institutional investors. Comparatively, 1.6% of SRM Entertainment shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Nintendo and SRM Entertainment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nintendo	0	1	4	0	2.80
SRM Entertainment	0	0	0	0	N/A

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nintendo	29.25%	20.77%	16.44%
SRM Entertainment	N/A	-132.54%	-118.42%

Summary

Nintendo beats SRM Entertainment on 9 of the 10 factors compared between the two stocks.

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.

About SRM Entertainment

SRM Entertainment, Inc. designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.