Playtika (NASDAQ:PLTK – Get Free Report) and Gravity (NASDAQ:GRVY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Earnings and Valuation
This table compares Playtika and Gravity”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Playtika | $2.57 billion | 1.08 | $235.00 million | $0.58 | 12.79 |
| Gravity | $555.74 million | 0.79 | $105.61 million | $8.98 | 7.00 |
Playtika has higher revenue and earnings than Gravity. Gravity is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Playtika | 0 | 5 | 3 | 0 | 2.38 |
| Gravity | 0 | 0 | 0 | 0 | 0.00 |
Playtika presently has a consensus target price of $9.25, suggesting a potential upside of 24.66%. Given Playtika’s stronger consensus rating and higher probable upside, analysts clearly believe Playtika is more favorable than Gravity.
Institutional and Insider Ownership
11.9% of Playtika shares are held by institutional investors. Comparatively, 9.9% of Gravity shares are held by institutional investors. 4.8% of Playtika shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Playtika and Gravity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Playtika | 8.52% | -144.73% | 6.99% |
| Gravity | 14.98% | 34.76% | 28.79% |
Risk & Volatility
Playtika has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Gravity has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Summary
Playtika beats Gravity on 9 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 Gravity
Gravity Co., Ltd. develops and publishes online and mobile games worldwide. It offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Landverse. Its mobile games portfolio includes Ragnarok M; Eternal Love; Ragnarok Origin; Ragnarok X: Next Generation; Ragnarok Arena; WITH ISLAND; the Labyrinth of Ragnarok; Ragnarok Poring Merge; Tera Classic; Ragnarok: The Lost Memories; Sadako M; NBA: Rise To Stardom; Milkmaid Of The Milky Way; Generation Zombie; Ragnarok Idle Adventure; Ragnarok 20 Heroes; White Chord; WITH: Whale In The High; Ragnarok Lost Memories; and Paladog Tactics. It also provides console games, such as Ragnarok DS for Nintendo DS; Ragnarok: The Princess of Light and Darkness for PlayStation Portable; Ragnarok Odyssey for PlayStation Vita; Double Dragon II for Xbox 360; Ragnarok Odyssey Ace for PlayStation Vita and PlayStation 3; Pigromance for Steam, Stove, Nintendo Switch, Xbox One, Xbox Series X|S; ALTF4 11 for Steam and Stove; Wetory for Steam, Stove, Nintedo Switch; and GRANDIA HD Collection for Nintendo Switch. In addition, it offers games for IPTV, including Haunted House and Pororo: The Little Penguin, and Kongsuni; and markets dolls, stationery, food, and other character based merchandises, as well as game manuals, monthly magazines, and other publications; PC games, including Puzzle Platformer, ALTF42, Ragnarok ZERO, KAMiBAKO-Mythology of Cube, Psychodemic, and FINAL KNIGHT; social network games and mobile games, such as Ragnarok V: Returns, Ragnarok: The Lost Memories and Ragnrok Begins in-house; and web-browser-based games, such as Ragnarok Prequel and Ragnarok Prequel II. Further, the company provides system development and maintenance services, as well as system integration services to third parties. The company was incorporated in 2000 and is headquartered in Seoul, South Korea. Gravity Co., Ltd. is a subsidiary of GungHo Online Entertainment, Inc.
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