Wynn Resorts (NASDAQ:WYNN) and Playtika (NASDAQ:PLTK) Critical Comparison

Wynn Resorts (NASDAQ:WYNN) and Playtika (NASDAQ:PLTK) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Wynn Resorts and Playtika, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Resorts	0	2	15	1	2.94
Playtika	1	4	2	0	2.14

Wynn Resorts currently has a consensus target price of $140.00, suggesting a potential upside of 34.42%. Playtika has a consensus target price of $4.00, suggesting a potential upside of 1.27%. Given Wynn Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Wynn Resorts is more favorable than Playtika.

Profitability

This table compares Wynn Resorts and Playtika’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wynn Resorts	5.14%	-42.03%	3.53%
Playtika	-10.54%	-67.46%	4.75%

Insider & Institutional Ownership

88.6% of Wynn Resorts shares are owned by institutional investors. Comparatively, 11.9% of Playtika shares are owned by institutional investors. 0.9% of Wynn Resorts shares are owned by insiders. Comparatively, 5.7% of Playtika shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Wynn Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Playtika pays an annual dividend of $0.40 per share and has a dividend yield of 10.1%. Wynn Resorts pays out 29.9% of its earnings in the form of a dividend. Playtika pays out -51.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wynn Resorts has increased its dividend for 1 consecutive years. Playtika is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Wynn Resorts has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Playtika has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Earnings & Valuation

This table compares Wynn Resorts and Playtika”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Resorts	$7.14 billion	1.51	$327.33 million	$3.35	31.09
Playtika	$2.79 billion	0.54	-$206.40 million	($0.77)	-5.13

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

Summary

Wynn Resorts beats Playtika on 13 of the 18 factors compared between the two stocks.

About Wynn Resorts

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.

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.