Analysis of Take-Two Interactive Software (NASDAQ:TTWO) and Palantir Technologies (NYSE:PLTR)

Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) and Palantir Technologies (NYSE:PLTR – Get Free Report) are both large-cap consumer discretionary companies, but which is the better investment? We compare the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation, and risk.

Institutional and insider ownership

95.5% of Take-Two Interactive Software shares are held by institutional investors. By comparison, 45.7% of Palantir Technologies shares are held by institutional investors. 1.4% of Take-Two Interactive Software shares are held by insiders. By comparison, 12.9% of Palantir Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, foundations, and large asset managers believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity, and return on assets of Take-Two Interactive Software and Palantir Technologies.

Risk and volatility

Take-Two Interactive Software has a beta of 0.84, meaning its stock is 16% less volatile than the S&P 500. For comparison, Palantir Technologies has a beta of 2.71, meaning its stock is 171% more volatile than the S&P 500.

Analyst Recommendations

This is an overview of the current ratings and price targets for Take-Two Interactive Software and Palantir Technologies, as provided by MarketBeat.

Take-Two Interactive Software currently has a consensus target price of $180.62, suggesting a potential upside of 24.72%. Palantir Technologies has a consensus target price of $23.14, suggesting a potential downside of 22.88%. Given Take-Two Interactive Software’s stronger consensus rating and likely higher upside, research analysts clearly believe Take-Two Interactive Software is more favorable than Palantir Technologies.

Profit and appreciation

This table compares the revenue, earnings per share, and valuation of Take-Two Interactive Software and Palantir Technologies.

Palantir Technologies has lower revenues but higher profits than Take-Two Interactive Software. Take-Two Interactive Software trades at a lower price-to-earnings ratio than Palantir Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Palantir Technologies beats Take-Two Interactive Software on 9 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 markets its products under the brands Rockstar Games, 2K, Private Division and Zynga. It develops and publishes action/adventure products under the brands Grand Theft Auto, Max Payne, Midnight Club, LA Noire and Red Dead Redemption. The Company also publishes a variety of entertainment products across multiple platforms and genres, including shooter, action, role-playing, strategy, sports and family/casual entertainment under the titles BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands and Tiny Tina’s Wonderland. Additionally, the Company publishes sports simulation titles, including the NBA 2K series, a basketball video game; the professional wrestling series WWE 2K; and PGA TOUR 2K. The Company also publishes Kerbal Space Program, OlliOlli World and The Outer Worlds and Ancestors: The Humankind Odyssey; Take-Two Interactive Software, Inc. produces and sells 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 mobile handsets, including smartphones and tablets. The Company delivers 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.

About Palantir Technologies

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Palantir Technologies Inc. builds and deploys intelligence software platforms to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company offers Palantir Gotham, a software platform that enables users to identify patterns hidden deep within data sets ranging from signals intelligence sources to confidential informant reports, and facilitates handoffs between analysts and operational users, enabling operators to plan and execute real-world responses to threats identified within the platform. It also offers Palantir Foundry, a platform that transforms the way organizations operate by creating a central operating system for their data; and empowering individual users to integrate and analyze the data they need in one place. It also offers Palantir Apollo, a software that delivers software and updates to the entire enterprise, enabling customers to deploy their software in virtually any environment; and Palantir Artificial Intelligence Platform (AIP), which provides unified access to open-source, self-hosted, and commercial large language models (LLM) that can transform structured and unstructured data into LLM-understandable objects and transform organizations’ actions and processes into tools for people and LLM-driven agents. The company was founded in 2003 and is headquartered in Denver, Colorado.

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