Analyzing Playtika (PLTK) and Its Peers

Playtika (NASDAQ:PLTK) is one of 184 public companies in the “Entertainment” industry, but how does it weigh in compared to its peers? We will compare Playtika to related companies based on the strength of its risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Playtika and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtika	1	3	2	0	2.17
Playtika Competitors	1877	4511	9625	255	2.51

Playtika presently has a consensus target price of $3.35, indicating a potential upside of 37.30%. As a group, “Entertainment” companies have a potential upside of 18.61%. Given Playtika’s higher probable upside, equities research analysts plainly believe Playtika is more favorable than its peers.

Earnings and Valuation

This table compares Playtika and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Playtika	$2.76 billion	-$206.40 million	-3.34
Playtika Competitors	$4.13 billion	$73.91 million	14.16

Playtika’s peers have higher revenue and earnings than Playtika. Playtika is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Playtika and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Playtika	-9.89%	-65.82%	6.17%
Playtika Competitors	11.01%	-22.78%	-2.44%

Institutional and Insider Ownership

11.9% of Playtika shares are owned by institutional investors. Comparatively, 36.3% of shares of all “Entertainment” companies are owned by institutional investors. 5.7% of Playtika shares are owned by insiders. Comparatively, 24.0% of shares of all “Entertainment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Playtika has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Playtika’s peers have a beta of 1.00, suggesting that their average share price is 0% less volatile than the S&P 500.

Summary

Playtika peers beat Playtika on 10 of the 13 factors compared.

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.