Critical Survey: DraftKings (NASDAQ:DKNG) vs. Playtika (NASDAQ:PLTK)

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

Institutional and Insider Ownership

11.9% of Playtika shares are owned by institutional investors. Comparatively, 37.7% of DraftKings shares are owned by institutional investors. 4.8% of Playtika shares are owned by company insiders. Comparatively, 47.1% of DraftKings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Playtika has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, DraftKings has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Playtika and DraftKings, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtika	1	4	2	0	2.14
DraftKings	2	5	25	0	2.72

Playtika presently has a consensus price target of $4.68, suggesting a potential upside of 65.91%. DraftKings has a consensus price target of $37.09, suggesting a potential upside of 56.68%. Given Playtika’s higher possible upside, analysts clearly believe Playtika is more favorable than DraftKings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Playtika	-7.49%	-114.29%	5.40%
DraftKings	0.06%	5.36%	0.96%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Playtika	$2.76 billion	0.39	-$206.40 million	($0.54)	-5.22
DraftKings	$6.05 billion	1.93	$3.71 million	($0.04)	-591.75

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

Summary

DraftKings beats Playtika on 11 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 DraftKings

DraftKings Inc. operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators. In addition, it offers DraftKings marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions. The company is headquartered in Boston, Massachusetts.