Analyzing PLAYSTUDIOS (NASDAQ:MYPS) and Capcom (OTCMKTS:CCOEY)

PLAYSTUDIOS (NASDAQ:MYPS) and Capcom (OTCMKTS:CCOEY) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares PLAYSTUDIOS and Capcom”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PLAYSTUDIOS	$235.10 million	0.25	-$28.64 million	($0.22)	-2.11
Capcom	$1.11 billion	10.94	$319.78 million	$0.51	22.41

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

Volatility & Risk

PLAYSTUDIOS has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Capcom has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Institutional and Insider Ownership

37.5% of PLAYSTUDIOS shares are held by institutional investors. 14.7% of PLAYSTUDIOS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares PLAYSTUDIOS and Capcom’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%
Capcom	32.82%	26.93%	21.51%

Analyst Recommendations

This is a breakdown of current ratings for PLAYSTUDIOS and Capcom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PLAYSTUDIOS	1	2	1	0	2.00
Capcom	0	1	0	0	2.00

PLAYSTUDIOS presently has a consensus target price of $1.25, indicating a potential upside of 169.05%. Given PLAYSTUDIOS’s higher possible upside, equities research analysts clearly believe PLAYSTUDIOS is more favorable than Capcom.

Summary

Capcom beats PLAYSTUDIOS on 8 of the 13 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 Capcom

Capcom Co., Ltd. plans, develops, manufactures, sells, and distributes home video games, online games, mobile games, and arcade games in Japan and internationally. It operates through Digital Contents, Arcade Operations, Amusement Equipments, and Other Businesses segments. The Digital Contents segment develops and sells digital game content for consumer home video game platforms, as well as mobile content and PC online games. The Arcade Operations segment operates Plaza Capcom amusement facilities primarily in commercial complexes, as well as hosts various events. The Amusement Equipments segment is involved in the development, manufacture, and sale of software, frames and LCD devices for gaming machines. The Other Businesses segment engages in the adapting game content into movies, animated television programs, music CDs, and merchandise; and devoting resources to esports. Capcom Co., Ltd. was incorporated in 1979 and is headquartered in Osaka, Japan.