Head-To-Head Analysis: Playtika (NASDAQ:PLTK) & SJM (OTCMKTS:SJMHF)

SJM (OTCMKTS:SJMHF) and Playtika (NASDAQ:PLTK) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Volatility and Risk

SJM has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Earnings and Valuation

This table compares SJM and Playtika”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SJM	$3.69 billion	0.58	$410,000.00	N/A	N/A
Playtika	$2.55 billion	0.53	$162.20 million	$0.24	14.96

Playtika has lower revenue, but higher earnings than SJM.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SJM	N/A	N/A	N/A
Playtika	3.16%	-114.44%	3.23%

Institutional and Insider Ownership

11.9% of Playtika shares are held by institutional investors. 4.8% of Playtika shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for SJM and Playtika, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SJM	0	2	0	0	2.00
Playtika	0	5	3	0	2.38

Playtika has a consensus price target of $6.00, indicating a potential upside of 67.13%. Given Playtika’s stronger consensus rating and higher probable upside, analysts clearly believe Playtika is more favorable than SJM.

Summary

Playtika beats SJM on 9 of the 12 factors compared between the two stocks.

About SJM

SJM Holdings Limited, an investment holding company, owns, develops, and operates casinos and related facilities in Macau. The company operates through two segments, Gaming Operations; and Hotel, Catering, Retail and Leasing Operations. The Gaming Operations segment engages in rolling, non-rolling, and electronic game gaming operations. The Hotel, Catering, Retail, and Leasing Operations segment operates and manages a hotel; and offers catering, leasing, retail, and related activities. It also provides marketing and promotion, property development preparation, casino operations management, dredging, customer, retail, human resources and project management, shopping mall management, food and beverage, treasury, management, and hospitality services. The company was incorporated in 2006 and is based in Central, Hong Kong. SJM Holdings Limited is a subsidiary of Sociedade de Turismo e Diversões de Macau, S.A.

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.