Reviewing Allied Gaming & Entertainment (NASDAQ:AGAE) & Playtika (NASDAQ:PLTK)

Playtika (NASDAQ:PLTK) and Allied Gaming & Entertainment (NASDAQ:AGAE) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Playtika has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Allied Gaming & Entertainment has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Profitability

This table compares Playtika and Allied Gaming & Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Playtika	3.16%	-114.44%	3.23%
Allied Gaming & Entertainment	-280.09%	-19.56%	-11.82%

Insider & Institutional Ownership

11.9% of Playtika shares are held by institutional investors. Comparatively, 3.2% of Allied Gaming & Entertainment shares are held by institutional investors. 4.8% of Playtika shares are held by insiders. Comparatively, 39.4% of Allied Gaming & Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Playtika and Allied Gaming & Entertainment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtika	0	6	3	0	2.33
Allied Gaming & Entertainment	1	0	0	0	1.00

Playtika currently has a consensus target price of $6.00, suggesting a potential upside of 63.49%. Given Playtika’s stronger consensus rating and higher probable upside, research analysts clearly believe Playtika is more favorable than Allied Gaming & Entertainment.

Earnings & Valuation

This table compares Playtika and Allied Gaming & Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Playtika	$2.55 billion	0.54	$162.20 million	$0.24	15.29
Allied Gaming & Entertainment	$7.94 million	1.59	-$16.76 million	($0.54)	-0.62

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

Summary

Playtika beats Allied Gaming & Entertainment on 10 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 Allied Gaming & Entertainment

Allied Gaming & Entertainment, Inc. operates as an experiential entertainment company, which engages in the creation of esports venues and live events for both video games and poker. The company was founded in 2017 and is headquartered in New York, NY.