Square Enix (OTCMKTS:SQNXF – Get Free Report) and Teads (NASDAQ:TEAD – Get Free Report) are both communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
Volatility and Risk
Square Enix has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Teads has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.
Profitability
This table compares Square Enix and Teads’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Square Enix | N/A | N/A | N/A |
| Teads | -73.38% | -222.41% | -10.03% |
Analyst Recommendations
This is a summary of recent recommendations for Square Enix and Teads, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Square Enix | 0 | 0 | 0 | 1 | 4.00 |
| Teads | 1 | 1 | 1 | 0 | 2.00 |
Teads has a consensus price target of $0.40, suggesting a potential upside of 123.46%. Given Teads’ higher probable upside, analysts clearly believe Teads is more favorable than Square Enix.
Valuation & Earnings
This table compares Square Enix and Teads”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Square Enix | $1.98 billion | 3.86 | $195.47 million | $0.75 | 28.21 |
| Teads | $571.30 million | 0.03 | -$517.07 million | ($8.63) | -0.02 |
Square Enix has higher revenue and earnings than Teads. Teads is trading at a lower price-to-earnings ratio than Square Enix, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
60.4% of Teads shares are held by institutional investors. 12.0% of Teads shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Square Enix beats Teads on 10 of the 15 factors compared between the two stocks.
About Square Enix
Square Enix Holdings Co., Ltd. is a Japanese entertainment company best known for developing and publishing video games. Its titles include the Final Fantasy, Dragon Quest and Kingdom Hearts franchises, released across console, PC and mobile platforms. The company also operates amusement facilities and develops arcade games, publishes manga and other books, and sells character-related merchandise. Its publishing business includes English-language manga releases through Square Enix Manga & Books.
About Teads
Teads is a global advertising technology company that operates an omnichannel digital advertising platform. The company connects advertisers and agencies with publishers and audiences across digital media, helping brands plan, buy, deliver and measure advertising campaigns through a combination of technology, data and creative services. Its offerings include video, display, native, connected television and other digital advertising formats. Teads provides tools for campaign management, audience targeting, automated media buying, creative development and performance measurement.
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