Reviewing Playtika (NASDAQ:PLTK) & Take-Two Interactive Software (NASDAQ:TTWO)

Playtika (NASDAQ:PLTK) and Take-Two Interactive Software (NASDAQ:TTWO) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

11.9% of Playtika shares are owned by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are owned by institutional investors. 4.8% of Playtika shares are owned by insiders. Comparatively, 1.3% of Take-Two Interactive Software shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Playtika and Take-Two Interactive Software”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Playtika	$2.55 billion	0.55	$162.20 million	$0.24	15.58
Take-Two Interactive Software	$5.63 billion	7.61	-$4.48 billion	($23.94)	-9.71

Playtika has higher earnings, but lower revenue than Take-Two Interactive Software. Take-Two Interactive Software is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Playtika and Take-Two Interactive Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Playtika	3.23%	-83.90%	2.59%
Take-Two Interactive Software	-72.92%	7.33%	2.81%

Volatility & Risk

Playtika has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Playtika and Take-Two Interactive Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtika	0	5	3	0	2.38
Take-Two Interactive Software	0	1	19	0	2.95

Playtika presently has a consensus target price of $7.0357, indicating a potential upside of 88.12%. Take-Two Interactive Software has a consensus target price of $245.60, indicating a potential upside of 5.61%. Given Playtika’s higher possible upside, equities analysts clearly believe Playtika is more favorable than Take-Two Interactive Software.

Summary

Take-Two Interactive Software beats Playtika on 8 of the 14 factors compared between the two stocks.

About Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.

About Take-Two Interactive Software

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.