Financial Contrast: Take-Two Interactive Software (NASDAQ:TTWO) vs. ANSYS (NASDAQ:ANSS)

Take-Two Interactive Software (NASDAQ:TTWOGet Free Report) and ANSYS (NASDAQ:ANSSGet Free Report) are both large-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Risk and Volatility

Take-Two Interactive Software has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, ANSYS has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Take-Two Interactive Software and ANSYS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Take-Two Interactive Software 0 4 19 0 2.83
ANSYS 2 6 1 0 1.89

Take-Two Interactive Software presently has a consensus target price of $178.09, indicating a potential upside of 13.45%. ANSYS has a consensus target price of $320.00, indicating a potential downside of 0.57%. Given Take-Two Interactive Software’s stronger consensus rating and higher possible upside, research analysts clearly believe Take-Two Interactive Software is more favorable than ANSYS.

Valuation & Earnings

This table compares Take-Two Interactive Software and ANSYS’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Take-Two Interactive Software $5.35 billion 5.03 -$3.74 billion ($21.98) -7.14
ANSYS $2.23 billion 12.61 $500.41 million $4.98 64.62

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

Profitability

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

Net Margins Return on Equity Return on Assets
Take-Two Interactive Software -69.99% 2.19% 1.20%
ANSYS 19.51% 10.45% 7.80%

Insider & Institutional Ownership

95.5% of Take-Two Interactive Software shares are owned by institutional investors. Comparatively, 92.4% of ANSYS shares are owned by institutional investors. 1.4% of Take-Two Interactive Software shares are owned by insiders. Comparatively, 0.5% of ANSYS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

ANSYS beats Take-Two Interactive Software on 8 of the 14 factors compared between the two stocks.

About Take-Two Interactive Software

(Get Free Report)

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 ANSYS

(Get Free Report)

ANSYS, Inc. develops and markets engineering simulation software and services for engineers, designers, researchers, and students in the United States, Japan, Germany, China, Hong Kong, South Korea, rest of Europe, the Middle East, Africa, and internationally. It offers structural analysis product suite that provides simulation tools for product design and optimization; the Ansys Mechanical product, an element analysis software; LS-DYNA solver for multiphysics simulation; and power analysis and optimization software suite. The company also offers electronics product suite that provides electromagnetic field simulation software for designing electronic and electromechanical products; Ansys High Frequency Structure Simulator product for radio frequency and microwave design; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; fluids product suite that enables modeling of fluid flow and other related physical phenomena; Ansys Fluent computational fluid dynamics software package; Ansys RedHawk-SC for electronic design automation; Ansys Optics software; and mission-simulation, modeling, testing, and analysis software. In addition, it offers Ansys Granta MI system for materials information management; Ansys Granta Selector technology for materials selection and graphical analysis; CES EduPack product, a set of teaching resources; Granta Materials Data for Simulation; Ansys Lumerical product, a photonics simulation software solution; safety-certified embedded software solutions; Discovery product family for use in the simulation of product design; academic product suite for research and teaching settings. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

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