Valuation: THQ Nordic vs. Frontier Developments (50% discount for the similar profile)

THQ Nordic reported FY2016 earnings this morning.

They are similar in size and growth to Frontier so I like to compare them.

For THQ I will be using FY2016 and for Frontier I will use TTM per H1 2017 as the two companies have different financial years. But this way I will cover roughly the same calendar period.

I will translate Frontier numbers to SEK at GBPSEK 11.00

Revenue

  • THQ 302 mSEK
  • FDEV 317 mSEK

Revenue growth YoY

  • THQ +42%
  • FDEV +66%

EBITDA

  • THQ 132 mSEK
  • FDEV 94 mSEK

Net profit

  • THQ 71,9 mSEK
  • FDEV 50,6 mSEK

Market Cap

  • THQ 2,225 mSEK
  • FDEV 1,055 mSEK

Do I need to say which one I would rather own?