Comparing Galaxy Gaming (OTCMKTS:GLXZ) & Playtika (NASDAQ:PLTK)

Galaxy Gaming (OTCMKTS:GLXZ) and Playtika (NASDAQ:PLTK) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Earnings & Valuation

This table compares Galaxy Gaming and Playtika”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Gaming	$31.74 million	2.30	-$2.63 million	($0.16)	-18.00
Playtika	$2.55 billion	0.55	$162.20 million	$0.24	15.50

Playtika has higher revenue and earnings than Galaxy Gaming. Galaxy Gaming is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Galaxy Gaming has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Playtika has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Galaxy Gaming and Playtika’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galaxy Gaming	-13.60%	N/A	-12.08%
Playtika	3.23%	-83.90%	2.59%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Galaxy Gaming and Playtika, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Gaming	0	0	0	0	0.00
Playtika	0	5	3	0	2.38

Playtika has a consensus target price of $7.04, suggesting a potential upside of 89.13%. Given Playtika’s stronger consensus rating and higher probable upside, analysts plainly believe Playtika is more favorable than Galaxy Gaming.

Institutional & Insider Ownership

0.4% of Galaxy Gaming shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 21.9% of Galaxy Gaming shares are held by insiders. Comparatively, 5.1% of Playtika shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Playtika beats Galaxy Gaming on 10 of the 14 factors compared between the two stocks.

About Galaxy Gaming

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, Bonus Craps, and EZ Baccarat titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker names. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. It markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. The company was founded in 2006 and is headquartered in Las Vegas, Nevada.

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.