PENN Entertainment (NASDAQ:PENN – Get Free Report) and PLAYSTUDIOS (NASDAQ:MYPS – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Volatility and Risk
PENN Entertainment has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, PLAYSTUDIOS has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.
Earnings and Valuation
This table compares PENN Entertainment and PLAYSTUDIOS”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PENN Entertainment | $6.58 billion | 0.30 | -$311.50 million | ($6.35) | -2.33 |
| PLAYSTUDIOS | $289.43 million | 0.29 | -$28.69 million | ($0.29) | -2.26 |
PLAYSTUDIOS has lower revenue, but higher earnings than PENN Entertainment. PENN Entertainment is trading at a lower price-to-earnings ratio than PLAYSTUDIOS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PENN Entertainment and PLAYSTUDIOS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PENN Entertainment | -13.24% | -4.59% | -0.83% |
| PLAYSTUDIOS | -15.10% | -8.71% | -6.77% |
Institutional & Insider Ownership
91.7% of PENN Entertainment shares are held by institutional investors. Comparatively, 37.5% of PLAYSTUDIOS shares are held by institutional investors. 2.7% of PENN Entertainment shares are held by company insiders. Comparatively, 14.7% of PLAYSTUDIOS shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for PENN Entertainment and PLAYSTUDIOS, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PENN Entertainment | 3 | 5 | 10 | 0 | 2.39 |
| PLAYSTUDIOS | 2 | 1 | 2 | 0 | 2.00 |
PENN Entertainment currently has a consensus price target of $21.25, indicating a potential upside of 43.78%. PLAYSTUDIOS has a consensus price target of $2.00, indicating a potential upside of 205.34%. Given PLAYSTUDIOS’s higher possible upside, analysts plainly believe PLAYSTUDIOS is more favorable than PENN Entertainment.
Summary
PENN Entertainment beats PLAYSTUDIOS on 9 of the 14 factors compared between the two stocks.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
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.
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