Critical Review: PLAYSTUDIOS (NASDAQ:MYPS) and Universal Entertainment (OTCMKTS:UETMF)

Universal Entertainment (OTCMKTS:UETMF) and PLAYSTUDIOS (NASDAQ:MYPS) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Universal Entertainment and PLAYSTUDIOS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Entertainment	N/A	N/A	N/A
PLAYSTUDIOS	-12.00%	-6.07%	-4.73%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Universal Entertainment and PLAYSTUDIOS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Entertainment	0	0	0	0	0.00
PLAYSTUDIOS	1	1	3	0	2.40

PLAYSTUDIOS has a consensus price target of $2.50, suggesting a potential upside of 145.10%. Given PLAYSTUDIOS’s stronger consensus rating and higher probable upside, analysts clearly believe PLAYSTUDIOS is more favorable than Universal Entertainment.

Insider and Institutional Ownership

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

Earnings & Valuation

This table compares Universal Entertainment and PLAYSTUDIOS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Entertainment	$1.28 billion	0.44	$201.92 million	($1.28)	-5.66
PLAYSTUDIOS	$289.43 million	0.44	-$28.69 million	($0.24)	-4.25

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

Risk and Volatility

Universal Entertainment has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Summary

PLAYSTUDIOS beats Universal Entertainment on 9 of the 14 factors compared between the two stocks.

About Universal Entertainment

Universal Entertainment Corporation, together with its subsidiaries, manufactures, develops, and sells pachislot and pachinko machines in Japan, Philippines, and internationally. The company operates in two segments, Amusement Equipment Business, and Integrated Resort Business. The company also develops and provides Falcon X, a peripheral system; Hot Stadium, a digital signage system; Universal Kingdom, a membership website for Android; and Slots Street, a social casino game; as well as operates OKADA MANILA, a casino resort in the Philippines. In addition, it operates casino, hotel, food and beverage, retail and leasing, entertainment, and real estate development businesses. The company was formerly known as Aruze Corp. and changed its name to Universal Entertainment Corporation in November 2009. Universal Entertainment Corporation was founded in 1969 and is headquartered in Tokyo, Japan.

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.