In light of National Video Games Day, six stocks that may benefit from the gaming community are Nintendo Co. Ltd. (TSE:7974, Financial), Activision Blizzard Inc. (ATVI, Financial), NetEase Inc. (NTES, Financial), Electronic Arts Inc. (EA, Financial), Roblox Corp. (RBLX, Financial) and Take-Two Interactive Software Inc. (TTWO, Financial) according to the Stock Comparison Table, a Premium feature of GuruFocus.
According to an article on NationalToday.com, the digital realm of video games is celebrated on Sept. 12 of each year. While video games started around the 1940s, the video game industry has expanded over the past few decades, with Japanese video game giant Nintendo publishing games under key franchises like Super Mario Bros., the Legend of Zelda and Metroid.
As such, investors can find other major video game publishing companies using GuruFocus’ Stock Comparison Table, a tool that compares a stock’s financial data to that of its key competitors.
Stock Comparison Table allows users to compare a company with its competitors
Figure 1 illustrates the stock comparison table for Nintendo (TSE:7974, Financial).
Figure 1
As Figure 1 illustrates, the stock comparison table adds by default Nintendo’s competitors, allowing users to easily compare its fundamental data to that of other video game stocks with similar market cap. Users can add additional metrics to the view and compare historical data as discussed in the tutorial article on the subject.
Nintendo has a GF Score of 95 out of 100 based on a GF Value rank of 7 out of 10, a rank of 10 out of 10 for financial strength and momentum and a rank of 9 out of 10 for profitability and growth.
Activision Blizzard
Shares of Activision Blizzard (ATVI, Financial) traded around $78.54, showing the stock is fairly valued based on Monday’s price-to-GF Value ratio of 1.07.
The Santa Monica, California-based company publishes games like World of Warcraft and Call of Duty. Activision has a GF Score of 91 out of 100 based on a momentum rank of 10 out of 10, a profitability rank of 9 out of 10, a GF Value rank of 5 out of 10 and a rank of 8 out of 10 for financial strength and growth.
Gurus with holdings in Activision Blizzard include Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) and Jim Simons (Trades, Portfolio)’ Renaissance Technologies.
NetEase
Shares of NetEase (NTES, Financial) traded around $87.39, showing the stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.77.
The Hangzhou, Zhejiang-based mobile game company has a GF Score of 99 out of 100, driven by a rank of 10 out of 10 for profitability, growth and momentum, a GF Value rank of 9 out of 10 and a financial strength rank of 7 out of 10.
Gurus with holdings in NetEase include Dodge & Cox and Ken Fisher (Trades, Portfolio)’s Fisher Investments.
Electronic Arts
Shares of Electronic Arts (EA, Financial) traded around $130.85, showing the stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.79.
The Redwood City, California-based company publishes games under brands like Madden, FIFA and Battlefield. Electronic Arts has a GF Score of 94 out of 100, driven by a momentum rank of 10 out of 10, a rank of 9 out of 10 for profitability and GF Value and a rank of 8 out of 10 for growth and financial strength.
Roblox
Roblox (RBLX, Financial) operates an online platform that allows gamers to create, develop and monetize games for other players. Although the San Mateo, California-based company has a GF Score of 19 out of 100, the GF Score may give an incomplete picture of a stock’s potential because the company does not have enough data to compute ranks for growth, GF Value and momentum.
Take-Two Interactive Software
Shares of Take-Two Interactive Software (TTWO, Financial) traded around $129.54, showing the stock is modestly undervalued based on Monday’s price-to-GF Value ratio of 0.71.
The New York-based company publishes video games under labels like Rockstar Games, 2K and Zynga. Take-Two has a GF Score of 85 out of 100 based on a GF Value rank of 10 out of 10, a growth rank of 9 out of 10, a profitability rank of 7 out of 10, a financial strength rank of 5 out of 10 and a momentum rank of 4 out of 10.
