CHDN vs. TTWO: Which Stock Offers Better Value?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Source: NASDAQ.COM
Investment Comparison: Investors in the Gaming sector should consider Churchill Downs (CHDN) and Take-Two Interactive (TTWO), with CHDN currently rated #2 (Buy) and TTWO rated #3 (Hold) by Zacks Rank, indicating a stronger earnings outlook for CHDN.
Valuation Metrics: CHDN has a forward P/E ratio of 18.65 and a PEG ratio of 1.91, while TTWO has a much higher forward P/E of 75.11 and a PEG ratio of 2.17, suggesting that CHDN is more undervalued compared to TTWO.
Value Grades: Based on various valuation metrics, CHDN has earned a Value grade of B, whereas TTWO has a Value grade of D, further indicating that CHDN is the superior value option at this time.
Expert Recommendations: Zacks Investment Research has highlighted CHDN as a strong investment choice, alongside other top stock recommendations that have shown significant potential for growth.
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Analyst Views on TTWO
Wall Street analysts forecast TTWO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTWO is 286.77 USD with a low forecast of 270.00 USD and a high forecast of 300.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
14 Buy
0 Hold
0 Sell
Strong Buy
Current: 243.180
Low
270.00
Averages
286.77
High
300.00
Current: 243.180
Low
270.00
Averages
286.77
High
300.00
About TTWO
Take-Two Interactive Software, Inc. is a developer, publisher, and marketer of interactive entertainment for consumers around the globe. The Company develops and publishes products principally through Rockstar Games, 2K, and Zynga. Its products are designed for console gaming systems, including, but not limited to, the Sony Computer Entertainment, Inc. (Sony) PlayStation4 (PS4) and PlayStation5 (PS5), the Microsoft Corporation (Microsoft) Xbox One (Xbox One) and Xbox Series XS (Xbox Series XS), and the Nintendo Switch (Switch), as well as mobile, including smartphones and tablets, and personal computers (PC). It delivers its products through physical retail, digital download, online platforms, and cloud streaming services. It sells software titles both digitally and physically through direct relationships with digital storefronts and platform partners, large retail customers, and third-party distributors. It also sells advertising within a number of its games, primarily in mobile.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Take-Two Interactive (TTWO) Shares Drop 1.85% for Seven Consecutive Days
- Stock Decline: Take-Two Interactive (TTWO) shares fell 1.85% to $239.81 in afternoon trading on Friday, marking a seventh consecutive day of losses, indicating growing market concerns about the company's future performance.
- Employee Dismissal Controversy: A group of employees at TTWO's subsidiary Rockstar Games in the U.K. were dismissed for attempting to unionize, with the tribunal denying interim pay relief, which could negatively impact the company's reputation and employee relations.
- Cautious Analyst Ratings: According to Seeking Alpha's Quantrating system, TTWO holds a 'Hold' rating with a score of 3.33, showing strong growth and revisions but offset by lower profitability and valuation scores, suggesting limited upside potential for the stock.
- Intensifying Market Competition: While analysts remain optimistic about TTWO's strong bookings growth and robust pipeline, increasing competition in casual gaming and a diminishing technical moat may pose significant challenges to its market position.
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