PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) and PENN Entertainment (NASDAQ:PENN – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.
Risk & Volatility
PLAYSTUDIOS has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Insider & Institutional Ownership
37.5% of PLAYSTUDIOS shares are owned by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are owned by institutional investors. 14.7% of PLAYSTUDIOS shares are owned by insiders. Comparatively, 2.7% of PENN Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PLAYSTUDIOS | $289.43 million | 0.29 | -$28.69 million | ($0.29) | -2.27 |
| PENN Entertainment | $6.58 billion | 0.31 | -$311.50 million | ($6.35) | -2.38 |
PLAYSTUDIOS has higher earnings, but lower revenue than PENN Entertainment. PENN Entertainment is trading at a lower price-to-earnings ratio than PLAYSTUDIOS, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for PLAYSTUDIOS and PENN Entertainment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PLAYSTUDIOS | 2 | 1 | 2 | 0 | 2.00 |
| PENN Entertainment | 3 | 5 | 10 | 0 | 2.39 |
PLAYSTUDIOS presently has a consensus target price of $2.00, indicating a potential upside of 204.23%. PENN Entertainment has a consensus target price of $21.25, indicating a potential upside of 40.36%. Given PLAYSTUDIOS’s higher possible upside, equities analysts plainly believe PLAYSTUDIOS is more favorable than PENN Entertainment.
Profitability
This table compares PLAYSTUDIOS and PENN Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PLAYSTUDIOS | -15.10% | -8.71% | -6.77% |
| PENN Entertainment | -13.24% | -4.59% | -0.83% |
Summary
PENN Entertainment beats PLAYSTUDIOS on 9 of the 14 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 PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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