Financial Survey: PLAYSTUDIOS (NASDAQ:MYPS) & Churchill Downs (NASDAQ:CHDN)

Churchill Downs (NASDAQ:CHDN) and PLAYSTUDIOS (NASDAQ:MYPS) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Churchill Downs and PLAYSTUDIOS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	1	11	0	2.92
PLAYSTUDIOS	1	2	1	0	2.00

Churchill Downs presently has a consensus price target of $135.00, suggesting a potential upside of 46.83%. PLAYSTUDIOS has a consensus price target of $1.25, suggesting a potential upside of 169.51%. Given PLAYSTUDIOS’s higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than Churchill Downs.

Risk and Volatility

Churchill Downs has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares Churchill Downs and PLAYSTUDIOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	13.09%	43.26%	6.06%
PLAYSTUDIOS	-12.18%	-10.75%	-8.43%

Valuation & Earnings

This table compares Churchill Downs and PLAYSTUDIOS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.93 billion	2.19	$383.00 million	$5.26	17.48
PLAYSTUDIOS	$235.10 million	0.25	-$28.64 million	($0.22)	-2.11

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

Insider & Institutional Ownership

82.6% of Churchill Downs shares are held by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are held by institutional investors. 5.9% of Churchill Downs shares are held by insiders. Comparatively, 14.7% of PLAYSTUDIOS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Churchill Downs beats PLAYSTUDIOS on 11 of the 14 factors compared between the two stocks.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

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.