PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) and Take-Two Interactive Software (NASDAQ:TTWO – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.
Profitability
This table compares PLAYSTUDIOS and Take-Two Interactive Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PLAYSTUDIOS | -12.18% | -10.75% | -8.43% |
| Take-Two Interactive Software | -60.45% | 17.73% | 5.71% |
Earnings and Valuation
This table compares PLAYSTUDIOS and Take-Two Interactive Software”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PLAYSTUDIOS | $235.10 million | 0.24 | -$28.64 million | ($0.22) | -2.04 |
| Take-Two Interactive Software | $5.63 billion | 6.51 | -$4.48 billion | ($22.38) | -8.85 |
PLAYSTUDIOS 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 PLAYSTUDIOS, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for PLAYSTUDIOS and Take-Two Interactive Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PLAYSTUDIOS | 1 | 2 | 1 | 0 | 2.00 |
| Take-Two Interactive Software | 1 | 1 | 16 | 1 | 2.89 |
PLAYSTUDIOS presently has a consensus price target of $1.25, suggesting a potential upside of 178.64%. Take-Two Interactive Software has a consensus price target of $284.31, suggesting a potential upside of 43.56%. Given PLAYSTUDIOS’s higher probable upside, equities analysts clearly believe PLAYSTUDIOS is more favorable than Take-Two Interactive Software.
Volatility and Risk
PLAYSTUDIOS has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Take-Two Interactive Software has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Institutional and Insider Ownership
37.5% of PLAYSTUDIOS shares are owned by institutional investors. Comparatively, 95.5% of Take-Two Interactive Software shares are owned by institutional investors. 14.7% of PLAYSTUDIOS shares are owned by company insiders. Comparatively, 1.3% of Take-Two Interactive Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Take-Two Interactive Software beats PLAYSTUDIOS on 9 of the 15 factors compared between the two stocks.
About PLAYSTUDIOS
PLAYSTUDIOS, Inc. develops and publishes free-to-play casual games for mobile and social platforms in the United States and internationally. The company's game portfolio includes a diverse range of titles comprising social casino, card, puzzle, and adventure games. It also offers POP! Slots, myVEGAS Slots, my KONAMI Slots, MGM Slots Live, myVEGAS Blackjack, myVEGAS Bingo, Tetris, Solitaire, Spider Solitaire, Jumbline 2, Sudoku, and Mahjong games. PLAYSTUDIOS, Inc. is headquartered in Las Vegas, Nevada.
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.
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