Activision Blizzard (NASDAQ:ATVI) and Intuit (NASDAQ:INTU) Head to Head Comparison

Posted by Defense World Staff on Jan 7th, 2023

Activision Blizzard (NASDAQ:ATVI – Get Rating) and Intuit (NASDAQ:INTU – Get Rating) are both large-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Activision Blizzard pays an annual dividend of $0.47 per share and has a dividend yield of 0.6%. Intuit pays an annual dividend of $3.12 per share and has a dividend yield of 0.8%. Activision Blizzard pays out 22.1% of its earnings in the form of a dividend. Intuit pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Activision Blizzard has raised its dividend for 12 consecutive years and Intuit has raised its dividend for 10 consecutive years.

Profitability

This table compares Activision Blizzard and Intuit’s net margins, return on equity and return on assets.

Net Margins	Return on Equity	Return on Assets
Activision Blizzard	22.75%	9.64%	6.94%
Intuit	14.10%	14.31%	8.49%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Activision Blizzard and Intuit, as reported by MarketBeat.

Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Activision Blizzard	0	4	14	0	2.78
Intuit	0	2	20	0	2.91

Activision Blizzard presently has a consensus price target of $93.11, suggesting a potential upside of 20.00%. Intuit has a consensus price target of $497.89, suggesting a potential upside of 28.81%. Given Intuit’s stronger consensus rating and higher probable upside, analysts plainly believe Intuit is more favorable than Activision Blizzard.

Risk and Volatility

Activision Blizzard has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Intuit has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

79.3% of Activision Blizzard shares are owned by institutional investors. Comparatively, 82.7% of Intuit shares are owned by institutional investors. 1.1% of Activision Blizzard shares are owned by company insiders. Comparatively, 3.2% of Intuit shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Activision Blizzard and Intuit’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Activision Blizzard	$8.80 billion	6.90	$2.70 billion	$2.13	36.43
Intuit	$12.73 billion	8.53	$2.07 billion	$6.57	58.83

Activision Blizzard has higher earnings, but lower revenue than Intuit. Activision Blizzard is trading at a lower price-to-earnings ratio than Intuit, indicating that it is currently the more affordable of the two stocks.

Summary

Intuit beats Activision Blizzard on 13 of the 17 factors compared between the two stocks.

About Activision Blizzard

(Get Rating)

Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Activision, Blizzard, and King. It develops and distributes content and services on video game consoles, personal computers, and mobile devices, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision and Blizzard products. The company also maintains a proprietary online gaming service, Battle.net that facilitates digital distribution of content, online social connectivity, and the creation of user-generated content. In addition, it operates esports leagues and offer digital advertising content; and provides warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, as well as manufacturers of interactive entertainment hardware products. The company's key product franchises include Call of Duty, World of Warcraft, Diablo, Hearthstone, Overwatch, Overwatch League, and Candy Crush. It serves retailers and distributors, including mass-market retailers, consumer electronics stores, discount warehouses, and game specialty stores through third-party distribution and licensing arrangements. The company is headquartered in Santa Monica, California.

About Intuit

(Get Rating)

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. The Small Business & Self-Employed segment provides QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; QuickBooks Self-Employed solution; QuickBooks Commerce, a solution for product-based businesses; QuickBooks Online Accountant; and payroll solutions, such as online payroll processing, direct deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and state income tax returns. This segment also offers payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; QuickBooks Cash business bank account; and financial supplies and financing for small businesses. The Consumer segment provides TurboTax income tax preparation products and services; and personal finance. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProConnect segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.

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