Analyzing Manchester United (NYSE:MANU) & Playtika (NASDAQ:PLTK)

Playtika (NASDAQ:PLTK) and Manchester United (NYSE:MANU) are both communication services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Profitability

This table compares Playtika and Manchester United’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Playtika	-9.89%	-65.82%	6.17%
Manchester United	-2.67%	0.64%	0.07%

Risk and Volatility

Playtika has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Manchester United has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Institutional and Insider Ownership

11.9% of Playtika shares are held by institutional investors. Comparatively, 23.3% of Manchester United shares are held by institutional investors. 5.7% of Playtika 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.

Valuation and Earnings

This table compares Playtika and Manchester United”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Playtika	$2.76 billion	0.35	-$206.40 million	($0.73)	-3.44
Manchester United	$862.42 million	4.83	-$42.74 million	($0.14)	-172.72

Manchester United has lower revenue, but higher earnings than Playtika. Manchester United 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

This is a summary of current recommendations for Playtika and Manchester United, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtika	1	4	2	0	2.14
Manchester United	1	0	0	0	1.00

Playtika presently has a consensus price target of $4.11, indicating a potential upside of 63.63%. Given Playtika’s stronger consensus rating and higher possible upside, analysts clearly believe Playtika is more favorable than Manchester United.

Summary

Playtika beats Manchester United on 8 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 Manchester United

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.